Haselkorn & Thibaut, a nationally recognized investment fraud law firm (investmentfraudlawyers.com), has opened an investigation into the activities of Katy Yun Zhao, a financial advisor registered with Morgan Stanley’s Pasadena, CA branch. With concerns arising from a recently settled customer dispute, investors are encouraged to closely review their account activities and understand all available options for recovery. Haselkorn & Thibaut offers free, confidential consultations for investors at 1-888-994-8066.
Who Is Katy Yun Zhao?
- Name: Katy Yun Zhao
- CRD Number: 5264406
- Broker-Dealer: Morgan Stanley (CRD #149777)
- Branch Location: 55 S. Lake Ave., Pasadena Towers – Tower II, Suite 700, Pasadena, CA 91101
- Registered Since: 12/23/2016 (broker); 11/03/2009 (investment advisor rep)
- Licenses: SIE, Series 7, 63, 65, 79, 86/87
- Regulatory Registration: Active in 30 U.S. states/territories
- Other Activities: Real estate rental/management, modeling engagement
Overview of Regulatory History and Disclosures
| Disclosure Type | Status for Katy Yun Zhao |
|---|---|
| Customer Complaints | One settled ($156,637 in 2/2025); no other reported complaints |
| Arbitrations | No pending or settled arbitration awards |
| Regulatory Actions (FINRA/SEC/States) | No disclosed disciplinary actions, fines, suspensions, bars, or censures |
| Civil Litigation | No identified lawsuits or claims involving investment advice/breach of duty/etc. |
| Ongoing Investigations | No current FINRA or SEC investigations publicly listed |
Summary of the Notable Customer Complaint
- A customer at Morgan Stanley alleged that Katy Yun Zhao failed to follow explicit instructions to transfer account positions “in-kind.”
- This oversight allegedly resulted in damaging losses to the account holder.
- The matter was settled in February 2025 for $156,637.
What Does This Mean for Investors?
It’s important for clients of Katy Yun Zhao at Morgan Stanley in Pasadena, CA, to carefully review all documentation and communications regarding their investment accounts, particularly if they have made specific requests around asset transfers or account instructions.
While this is the only publicized customer settlement involving Ms. Zhao, even a single substantial complaint and settlement can raise questions about adherence to basic broker duties. Investors expect their financial professionals not only to provide investment advice, but also to follow instructions promptly and accurately.
Potential Red Flags to Watch For:
- Failure to follow client instructions regarding account transactions or transfers
- Lack of clear documentation about major account changes
- Delays or discrepancies in account asset transfers
- Unexplained losses after simple administrative requests
If you have observed any of these warning signs or have questions about your account, you may wish to speak with an experienced securities fraud attorney.
Steps to Protect Yourself
- Review your account statements for any unexplained losses or discrepancies.
- Check your broker’s regulatory history using FINRA BrokerCheck (search “Katy Yun Zhao” or CRD 5264406).
- Document all communications you have had with your broker, especially about transfers or instructions.
- Seek a second opinion if you have concerns about how your account is being managed.
Why Act Now?
Time limits may apply if you wish to seek recovery for any losses. Brokerage firms like Morgan Stanley are required to supervise their representatives, and clients harmed by broker misconduct may have the right to recover losses through FINRA Arbitration or other avenues.
Haselkorn & Thibaut’s team brings over 50 years of combined experience representing investors nationwide, with a 98% success rate and millions recovered. There are no legal fees unless you obtain a recovery.
Are There Other Complaints or Regulatory Issues Against Katy Yun Zhao?
At present, the only customer dispute and settlement publicly reported is the $156,637 settlement in 2025 for alleged failure to follow transfer instructions.
There are no reported disciplinary actions by FINRA, the SEC, or state regulators, and no public securities litigation involving Ms. Zhao. As with all broker inquiries, investors are advised to directly verify the most current status through BrokerCheck or by consulting with independent professionals.
Get Experienced Guidance: Free Review From Haselkorn & Thibaut
If you have suffered losses, have lingering questions about your account, or simply want independent clarification on your investments, Haselkorn & Thibaut can help provide clarity and options. Recovery is possible, and each situation is unique—your first step is a confidential, free case review.
Contact Haselkorn & Thibaut today at 1-888-994-8066. There is no obligation and no fee unless a recovery is made for you.
Remember, taking prompt action and seeking professional review is crucial to protecting your financial future.
