FINRA Investigation Uncovers Jing Li’s Unauthorized Trading at The Leaders Group

The Leaders Group has recently terminated financial advisor Jing Li (CRD #5127356) following an internal investigation that uncovered multiple alleged instances of unauthorized trading and other procedural violations. Jing Li joined The Leaders Group in 2020 and maintained an active presence in the financial services industry for nearly two decades. This case has not only drawn the attention of industry regulators such as FINRA, but also serves as a cautionary tale for investors about the ongoing risks posed by investment fraud and poor financial advice.

“The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” – Benjamin Graham

Case Details and Investigation Findings

According to FINRA records accessed on July 27, 2025, Jing Li was terminated from The Leaders Group on April 17, 2025. The termination followed an internal investigation that brought to light serious compliance failures over the preceding fifteen months. The review found that between January 2024 and March 2025, Li was allegedly involved in the following violations:

• Executing trades in at least 12 client accounts without obtaining prior authorization
• Failing to maintain adequate documentation of client communications
• Circumventing established firm procedures for trade approvals
• Misrepresenting or failing to properly disclose certain investment risks to clients

As noted in the official disclosure system for advisor records and complaints, these types of actions not only violate firm policies but undermine the trust fundamental to the advisor-client relationship. Internal review revealed a consistent pattern of neglecting basic regulatory requirements, increasing concern for both existing and future clients who depend on their advisors to act in their best interest.

Professional Background and Disclosure History

Jing Li began her career in financial services in 2006, building experience at several well-known firms before her tenure at The Leaders Group. Her work history includes:

• Merrill Lynch (2006–2010)
• Morgan Stanley (2010–2015)
• Ni Advisors (2015–2020)

Over the span of nineteen years, Li was registered with four different firms, each time undertaking responsibility for clients’ financial well-being. According to her BrokerCheck report, her record shows two prior customer complaints involving allegations of unsuitable investment recommendations:

While not every complaint results in a finding against an advisor, repeated allegations of misconduct or negligence are always worth investor consideration. FINRA reports that about 7% of financial advisors have at least one disclosure event on their record, underlining the importance of performing background checks on every professional you hire to handle your money. For investors seeking further background on advisors, Investopedia offers a helpful guide on researching advisor credentials and disclosures.

FINRA Rules and Regulatory Landscape

At the center of this case is FINRA Rule 3260, which governs discretionary trading in client accounts. This rule mandates that advisors must:

• Obtain explicit permission from a client before executing any trade, unless a written discretionary agreement is in place
• Document all relevant communications regarding trades
• Fully disclose investment risks and costs to clients
• Uphold transparency, honesty, and fairness in all client dealings

The purpose of such regulations is multifold:

• Protect clients from unauthorized trades or unsuitable recommendations
• Maintain accurate records in the event of future disputes
• Ensure that advisors act as faithful stewards of client assets, minimizing potential abuse or conflicts of interest

When these protocols are ignored or circumvented, disciplinary action may be pursued by both the firm and regulatory authorities. The case of Jing Li is a clear example of these standards being put to the test.

Industry Risks: Investment Fraud and Poor Advice

The financial advisory field is not immune to the risks of bad advice or outright fraudulent practices. According to the Financial Industry Regulatory Authority (FINRA), investment fraud schemes cost investors billions of dollars every year. Common forms include unauthorized trading, unsuitable recommendations, misrepresentation of products, and even outright Ponzi schemes.

• In 2023 alone, Americans lost over $3.8 billion to investment fraud, as reported by the FBI’s Internet Crime Complaint Center (IC3).
• FINRA found that advisors with multiple disclosures on their record are five times more likely to commit new offenses, making thorough due diligence critical for investors.
• Clients who do not review their statements or question suspicious activity may not realize they are victims of misconduct until substantial financial harm has occurred.

For more information on risks and how to file complaints, you can visit the Financial Advisor Complaints resource.

Consequences and Industry Ramifications

The termination of Jing Li has set in motion a formal FINRA investigation, which could result in a range of disciplinary and corrective actions such as:

• Significant monetary fines
• Temporary or permanent suspension from the financial industry
• Mandatory enhanced supervision, if allowed to continue as an advisor
• Restitution payments to clients affected by unauthorized trading

These penalties are designed not just to sanction the individuals responsible, but also to deter future misconduct and reaffirm investor protections. High-profile cases like this one often lead to enhanced training and compliance protocols firm-wide. They also serve as reminders to firms about the importance of robust supervisory controls.

Best Practices: Protecting Yourself as an Investor

For individual investors, there are tangible steps you can take to reduce the risk of falling victim to advisor misconduct or financial fraud:

1. Review account statements frequently for unfamiliar or suspicious transactions.
2. Question any unexpected trading activity or discrepancies in your accounts immediately.
3. Understand the level of discretionary authority your advisor has under account agreements.
4. Keep comprehensive records of emails, letters, and phone conversations with your advisor.
5. Research your advisor’s registration and disciplinary history through resources like FINRA BrokerCheck.

By remaining vigilant and informed, you are far less likely to be blindsided by unauthorized transactions or the consequences of bad financial advice. Regulatory bodies, third-party complaint boards, and independent resources such as Financial Advisor Complaints are available to help you verify advisor credentials and file a complaint if you suspect wrongdoing.

As financial markets and regulations evolve, so too do the tactics of those who fail in their fiduciary duties. By staying proactive and educated, investors can better guard against both the intentional and unintentional acts that undermine their financial goals.