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.
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