Multiple customers filed complaints alleging broker Henry Chia-How Chang, formerly of Morgan Stanley in Pasadena and presently registered with Laidlaw Wealth Management, solicited investments away from the firm.
After customers accused Henry Chang (CRD #4049732) of selling away, Morgan Stanley filed an employment separation after allegations disclosure, in which the firm indicated the allegations involved soliciting outside investments and/or outside business activities.
As for the complaints themselves, investors accused Chang of "selling away with respect to outside investments." Chang submitted a statement denying wrongdoing: "The outside business activities allegation arose from my leadership position in the Chinese American community. I acted, as I frequently do, as a go-between/translator for non English speaking Chinese Americans. I helped them do their business. I was not involved in the solicitation of any outside investment."
Chang's BrokerCheck report lists no disclosed business activities other than employment and registration at Morgan Stanley and, presently, Laidlaw & Company in Pasadena. Insofar as history is concerned, Chang was the broker of record in a 2008 customer dispute settled for $75,000 that alleged misrepresentation over auction rate securities when stockbroker Chang was at Citigroup Global Markets in Temple City, CA.
Selling away misconduct occurs when an investment adviser or broker solicits or transacts securities outside the supervisory umbrella of their employing firm. Many times, these securities products are not approved by the brokerage and, usually, the transactions are unauthorized.
Affinity fraud occurs when financial wrongdoing occurs in certain groups, such as a group based on faith/religion, culture, occupation, charity, or even foreign language. Selling away and affinity fraud often run hand-in-hand because when illicit products are sold to a certain group or to people who speak a certain non-English language, the transactions often occur outside the scope of the firm and, in the case of foreign language-based activity, well removed from the firm's supervisory capabilities.
If you invested with Henry Chang at Morgan Stanley or with any broker or investment adviser who solicited or sold products away from the firm at which they were registered, and these unauthorized or unapproved transactions have proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.