Andrew Tang – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Andrew Tang.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Andrew Tang. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Andrew Tang
Andrew Tang is an Investment Adviser. Andrew Tang’s Central Registration Depository (CRD) number is 3157581 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/3157581.
Click here to download a Detailed Audit Report for Andrew Tang.
Andrew Tang has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Andrew Tang’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 12/31/2020
- Disclosure Type: Employment Separation After Allegations
- Disclosure Resolution:
- Disclosure Detail :: Firm Name: CLARAPHI ADVISORY NETWORK, LLC
- Termination Type: Discharged
- Allegations: FINRA instructs that a firm has a continuing obligation to amend an individual’s Form U-5. On May 3, 2021, Judge Danielle J. Viola in the Superior Court of Arizona, Maricopa County CV 2021-000707 found that Mr. Tang took from the firm private and sensitive confidential and valuable financial information and that the public interest is served by prohibiting Tang from using the firm’s confidential information for his own or others’ competitive advantage. During the hearing, Mr. Tang admitted that he did take this information from the Firm. In accordance with Judge Viola’s order, Mr. Tang provided the Firm with a written declaration under penalty of perjury confirming that all original or copies of documents taken from the Firm have been returned and deleted. The Firm stands by its previous disclosures regarding Mr. Tang. After Mr. Tang’s departure, the Firm received documents and information indicating Mr. Tang had willfully violated certain portions of the Firm’s Cyber-Security Policy, Compliance Manual and industry rules. The Firm hereby amends its initial Reason for Termination from Other to Discharged.
- Broker Comment: Mr. Tang fervently disagrees with Claraphi Advisory Network, LLC’s (Claraphi) termination reasons and explanations. Mr. Tang resigned as Chief Investment Officer from Claraphi on December 31, 2020 because of a hostile work environment. Claraphi first alleges that Mr. Tang was fined for failure to follow the firm’s advertising policy. This alleged violation involved emailing a personal picture family holiday card to approximately seven (7) long-term clients, which he disclosed to Compliance prior to sending and only after receiving what he believed was a verbal approval from Compliance, conditioned on relaying the seven (7) client names to Compliance, which was completed within one (1) business day of sending. Moreover, the nominal fine was ecommended by Compliance but never issued by the President, thus Mr. Tang had no duty to pay it; and if he did, he was never confronted by Claraphi regarding this matter at his point of departure or any time thereafter prior to issuance of his Form U5. Furthermore, months after the fact, Clariphi amended Mr. Tang’s Form U5 to reflect that he was discharged (which he was not), alleging he violated cybersecurity policies and industry rules. Mr. Tang intends to seek legal remedies to clarify this record.
DISCLOSURE 2 –
- Event Date: 5/9/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client claims an unsuitable trade was made in his IRA and was outside of the agreed-upon criteria.
- Damage Amount Requested: $98,766.00
- Settlement Amount: $90,000.00
- Broker Comment: Mr. Tang, who served as Chief Investment Officer of Claraphi Advisory Network, LLC (Clariphi) and advisor to this client the time of the complaint, wishes to clarify that this event was caused by a trading error from the portfolio management team, which he supervised, resulting in losses in the client’s account. While Claraphi attempted to perform a trade correction, the trade was unable to be reversed due to the time period which lapsed.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- LEGEND SECURITIES, INC. (CRD#: 44952) :: 3/30/2015 – 9/7/2016 :: NEW YORK, NY
- PURSHE KAPLAN STERLING INVESTMENTS (CRD#: 35747) :: 8/28/2013 – 12/16/2014 :: NEW YORK, NY
- NATIONAL SECURITIES CORPORATION (CRD#: 7569) :: 12/12/2002 – 8/6/2013 :: NEW YORK, NY
- WACHOVIA SECURITIES FINANCIAL NETWORK, INC. (CRD#: 11025) :: 10/22/2001 – 12/14/2002 :: ST. LOUIS, MO
- SANDS BROTHERS & CO., LTD. (CRD#: 26816) :: 6/10/1999 – 11/15/2001 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Andrew Tang, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Andrew Tang
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Andrew Tang – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (3157581) for the broker – Andrew Tang
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
This article is syndicated automatically through a third-party agency from BrokerComplaints.com.
To view the original article at BrokerComplaints.com, you can visit https://brokercomplaints.com/report/andrew-tang/.
