Former Raymond James Financial Services, Inc. broker Taek Chong (CRD# 1551473) has more than $2 million in customer complaints regarding overpayment of commissions. It is alleged that Chong engaged in defalcation, which is misappropriation of funds by a person trusted with its charge (also known as the act of misappropriation). Chong was registered with Raymond James Financial Services, Inc. in Mercer Island, Washington from 2000 to May 2018.
In June 2018, Chong was barred from FINRA regarding, “Without admitting or denying the findings, Chong consented to the sanction and to the entry of findings that he failed to provide information requested by FINRA in connection with its investigation of Chong’s voluntary termination from his member firm while he was under internal review for commission amounts associated with large institutional trades.”
Chong has been the subject of five customer complaints between 2018 and 2021, according to his CRD report:
- February 2021. “Former FA charged commissions to client [REDACTED] Securities Trust Co., Ltd., in excess of the applicable rate using “dummy” confirmations.” The customer sought $73,814.52 in damages and the case was settled for $101,749.44.
- November 2019. “Former FA Taek Chong charged commissions to client [REDACTED] Securities Investment Trust Co., Ltd. (“[REDACTED]”) in excess of the promised rate to [REDACTED]through the use of “dummy” confirmations. [REDACTED] alleged that it was overcharged in the approximate amount of $78,000.00.” The case was settled for $120,982.99.
- June 2019. “The client’s former FA wrote a letter to the client contending that he had overcharged the client on commissions and that he would send the client a cashiers’ check to make up for the overcharge. The letter to us requested an explanation of the FA’s letter. We responded that we would investigate whether the client was in fact overcharged.” The case was settled for $100,000.
- May 2018. “Overpayment of Commissions.” The case was settled for $1,091,070.30.
- May 2018. “Overpayment of Commissions.” The customer sought $919,868.71 in damages and the case was settled for $927,628.91.
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, Raymond James may be liable for investment or other losses suffered by Chong’s customers.
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