FINRA Fines Freeloading Rep for Improper Travel and Meal Expenses

A Financial Industry Regulatory Authority investigation has resulted in a 12-month suspension and a $10,000 fine for a former TD Securities representative who improperly used firm funds for personal commuting and meal expenses.
According to FINRA, between July 2022 and March 2023, Kate Yumi Lam, an investment banking representative who, at the time, was employed by TD Securities LLC, submitted $5,897.42 for 157 car service trips and 102 meals that did not comply with the firm’s travel and expense policy.
FINRA reported that, during the time of Lam’s employment with TD Securities, the firm did permit employees who worked in the office past 8 p.m. to use the firm’s car service account for transportation home from the office. Additionally, employees were also permitted to charge dinner to the firm’s corporate account, as long as the employee worked past 8 p.m., either in the office or remotely. Employees were also permitted to charge breakfast and lunch to the firm’s account when working in the office on a weekend.
Lam, however, improperly charged 157 trips totaling $4,275.34 to the firm’s car service account for ordinary commuting to and from the office before 8 p.m. and for other trips that were not within the firm’s policy. Furthermore, Lam also improperly charged 102 meals totaling $1,622.08 to the firm’s account for dinners when she was not working past 8 p.m., along with breakfasts and lunches ordered on weekends when she was not in the office.
As a result, FINRA stated that Lam’s actions violated FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade.
Without admitting or denying FINRA’s findings, Lam accepted and consented to the censure and the fine.
In May 2023, TD Securities filed a Uniform Termination Notice for Securities Industry Registration, also known as Form U5, stating that the firm had discharged Lam. In June 2023, the firm filed an amended Form U5 disclosing that Lam had been discharged due to a violation of the firm’s travel and expense policy. The matter originated from FINRA’s review of TD Securities amended June 2023 filing.
In December 2024, FINRA fined a former Morgan Stanley representative for similar meal offenses. He had 88 meals delivered to his home.