FINRA Suspends Former TD Securities Representative for Improper Expense Charges

Posted on May 5th, 2025 at 12:12 PM
FINRA Suspends Former TD Securities Representative for Improper Expense Charges

From the desk of Jim Eccleston at Eccleston Law

FINRA has suspended former TD Securities representative Kate Yumi Lam for 12 months and fined her $10,000 for improperly charging personal commuting and meal expenses to the firm's account.

According to DIWire, between July 2022 and March 2023, Lam submitted $5,897.42 in unauthorized expenses, including 157 car service trips and 102 meals that violated the firm’s travel and expense policy.

TD Securities allowed employees to use the firm’s car service for transportation home if they worked past 8 p.m. Employees could also charge meals to the firm’s account under similar conditions or if they worked in the office on weekends. However, FINRA found that Lam charged $4,275.34 in car service expenses for commuting outside of policy guidelines and $1,622.08 in meal expenses for unauthorized breakfasts, lunches, and dinners.

FINRA determined that Lam’s actions violated FINRA Rule 2010, which requires advisors to uphold high standards of commercial honor and just and equitable principles of trade.

Without admitting or denying FINRA’s findings, Lam agreed to the sanctions in what is known as an Acceptance, Waiver and Consent (“AWC”).

DIWire also reports that this case follows a December 2024 FINRA action against a former Morgan Stanley representative for similar meal-related violations, highlighting regulators’ continued focus on expense policy compliance.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

February 6, 2026
Delaware Regulators Fine Kovack Advisors $985,000

Kovack Advisors Inc., the registered investment adviser affiliate of independent broker-dealer Kovack Securities Inc., agreed to pay a $985,000 fine to Delaware securities regulators.

February 5, 2026
FINRA Fines Broker-Dealer for Repeated Form CRS Disclosure Failures

The Financial Industry Regulatory Authority (FINRA) fined VSI Securities Inc., formerly known as Venecredit Securities Inc., $20,000 for failing to accurately disclose the firm’s disciplinary history in its customer relationship summary, known as Form CRS.

February 4, 2026
Investor Redemptions Rise in Nontraded BDCs Amid Credit Concerns

Financial advisors and their clients have increased redemptions from nontraded business development companies (BDCs) following a series of high-profile corporate bankruptcies, according to InvestmentNews. The surge highlights growing investor concern about liquidity and credit exposure within these high-yield but often risky investment ...