Erez Law is currently investigating Morgan Stanley broker Katy Zhao (CRD# 5264406), who faces multiple customer complaints related to investment losses. She has been registered with Morgan Stanley in Pasadena, California, since 2009.
Katy Zhao Customer Complaints
She has been the subject of two customer complaints between 2025 and 2026, according to her CRD report:
January 2026. “Claimant alleges, inter alia, breach of fiduciary duty with respect to the management of her investment account – 2021-2023.” The customer is seeking $50,000 in damages, and the case is currently pending. The complaint was regarding common and preferred stocks and government debt losses.
February 2025. “Client verbally alleged that their instructions to transfer the positions in their account in kind to the contra firm were not followed 2025.” The case was settled for $156,637.15. The complaint was regarding exchange-traded funds (ETFs).
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Katy Zhao’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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