SEC Suspends David Kyi for 60 Months

David Kyi (CRD #: 2798134), a broker registered with SogoTrade, has been suspended by the SEC, according to his BrokerCheck record, accessed on January 4, 2025. Keep reading if you want to know more about his alleged conduct as a broker.

SEC Suspension

On December 17, 2024, the Securities and Exchange Commission instituted cease-and-desist proceedings against David Kyi, alleging that he served as SogoTrade’s Anti-Money Laundering Compliance Officer (AMLCO) during a period in which SogoTrade failed to file Suspicious Activity Reports (SARs) with the U.S. Treasury Department’s Financial Crimes Enforcement Network.

From at least May 2019 through October 2023, SogoTrade allegedly failed to investigate suspicious activity and failed to file SARs when it knew or suspected that its clients were facilitating illegal activity or engaging in activity with no apparent lawful purpose.

The firm allegedly also failed to follow and accurately document the written identity verification procedures described in its Customer Identification Program.

The SEC alleged that David Kyi, as AMLCO, was the person primarily responsible for the design and execution of the firm’s AML program and, until December 2021, was solely responsible for decisions to investigate suspicious activity and file SARs.

David Kyi allegedly also engaged in the following misconduct:

• Failed to apply the standards of the Bank Secrecy Act when investigating suspicious activity
• Failed to adequately review SogoTrade’s AML surveillance reports
• Alerted clients when surveillance reports identified suspicious trading activity and advised clients on how to avoid triggering firm review
• Failed to implement the key recommendations by SogoTrade’s independent AML auditor
• Failed to ensure that the firm adhered to its Customer Identification Program procedures

In a summary of the administrative proceedings, the SEC alleged that SogoTrade willfully violated Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 thereunder, and that David Kyi aided and abetted and caused these violations.

Securities Exchange Act of 1934

Section 17(a) of the Securities Exchange Act of 1934 defines the recordkeeping requirements for brokerage firms and other organizations, and Rule 17a-8 specifically requires brokerage firms to comply with federal recordkeeping and reporting requirements for currency and foreign transactions.

Sanctions

David Kyi was ordered to cease and desist from future violations of Section 17(a) of the Securities Exchange Act of 1934 and Rule 17a-8 thereunder.

He was also fined $25,000, and suspended from acting in a compliance capacity in any of the following roles or organizations for 60 months:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agent
• Nationally recognized statistical rating organizations (NRSROs)

Background Information

David Kyi has passed the following exams:

• General Securities Principal Examination – Series 24
• Registered Options Principal Examination – Series 4
• General Securities Sales Supervisor – General Module Examination – Series 10
• General Securities Sales Supervisor – Options Module Examination – Series 9
• Securities Trader Exam – Series 57TO
• Operations Professional Examination – Series 99TO
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

David Kyi is a registered broker in Missouri.

He has also worked for the following firms:

• Genesis Securities (CRD#:46992)
• E*Trade Clearing (CRD#:25025)
• E*Trade Securities (CRD#:29106)
• TD Ameritrade (CRD#:7870)

Kurta Law Can Help

If you worked with David Kyi and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.