According to FINRA, David Wong of Monterey Park, California has appealed an Office of Hearing Officers (OHO) decision to the National Adjudicatory Council (NAC). The OHO barred Wong from association with any FINRA member in all capacities for misusing and converting customer funds.

The findings stated that Wong converted funds in two customer accounts by transferring them to his member firm's account without the knowledge or consent of the customers.

In the first instance, Wong instructed the firm's clearing firm to transfer $3,230 from a customer's retirement account into a firm account. In the second instance, Wong assessed $6,200 in fees against a trust account established for two other customers, resulting in the transfer of that amount to a firm account.

The OHO found that by taking funds given to him by customers for other purposes and using them as if they were his own, Wong engaged in flagrant dishonesty that renders him unfit for employment in the securities industry.

Conversion—taking customer money or securities for unauthorized purposes—is among the most serious violations in the securities industry. It represents a fundamental breach of the trust customers place in their financial professionals and typically results in permanent bars from the industry.

Because Wong has appealed, the sanction is not currently in effect pending review by the NAC. The NAC may increase, decrease, modify, or reverse the findings and sanctions.

Customers who believe their funds may have been improperly taken should review their account statements carefully and consider consulting with a securities attorney about their options for recovery. Even though the case is on appeal, affected customers may have arbitration claims.