ADMINISTRATIVE PROCEEDING
File No. 3-21820

December 26, 2023 – The Securities and Exchange Commission today announced that Chingyuan “Gary” Chang (“Chang”), a former registered representative and investment adviser representative of a large financial institution, agreed to settle charges for misappropriating funds from the accounts of his brokerage customers and advisory client.  Chang resides in California.

According to the SEC’s order, from September 2021 through June 2022, Chang misappropriated approximately $58,560 from four individuals by initiating unauthorized Automated Clearing House transfers to his personal accounts at two online payment applications.  The order also finds that, as part of his scheme, Chang in some instances sold securities in the customer accounts shortly before making the fraudulent transfers to himself and took steps to conceal his misconduct.  As set forth in the order, after his employer began an internal review in July 2022, Chang repaid the amounts he misappropriated.  

The SEC’s order finds that Chang willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.  Without admitting or denying the findings, Chang consented to a cease-and-desist order and payment of a $58,560 penalty.  Chang further consented to a bar from association with any investment adviser, broker, dealer, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized statistical rating organization, as well as a penny stock bar and an investment company prohibition.  

The SEC’s investigation was conducted by Emmy Rush, James Flynn, and Wendy Tepperman under the supervision of Tejal D. Shah, all of the New York Regional Office.