Silver Law Group is investigating former National Securities Corporation (CRD# 7569) broker Bingyu Hu (CRD# 5573954) after FINRA permanently barred him and for excessive trading allegations.
According to Hu’s FINRA BrokerCheck report, FINRA permanently barred Hu from acting as a broker or otherwise associating with firms that sell securities in May 2016 after he failed to respond to a FINRA request for information.
Hu has three misconduct disclosures on his FINRA BrokerCheck. He currently has one FINRA arbitration pending that alleges excessive trading. The FINRA arbitration was filed in July 2015.
When a customer opens an account with a broker and brokerage firm, the customer can choose whether or not he or she wants to give the broker to trade discretionarily in order to capitalize as quickly as possible on an ever-changing market. Often times, customers choose to reserve that right and have the final “OK” before a broker facilitates a transaction.
Sometimes, investors give their brokers the freedom to freely trade in their accounts, giving the broker his or her trust and full discretion to trade the account. This allows the broker to facilitate a transaction without have to call the customer to get permission.
In some circumstances, those brokers with discretionary trading sometimes take advantage of that trust and excessively trade with no investment strategy in mind: this is called churning. These brokers are simply trading the account to collect fees on each transaction.
In cases where a broker breaks the investor’s trust and excessively trades an account and a broker-dealer allows it to happen without any checks and balances, the broker and broker-dealer may be held accountable for their customers.
FINRA arbitration is a fast, efficient way to possibly recover your lost investment funds due to excessive trading. We work on a contingency fee basis, meaning you pay us nothing unless we win and recover money for you.
If you have invested with Bingyi Hu and National Securities Corporation and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.