Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Felix Chu (Chu) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Chu was employed by Nylife Securities LLC at the time of the activity. If you have been a victim of Chu’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $113,620.00 on October 28, 2021.
Customer alleges that beginning in or around October 2017 until May 2018 they were misled into purchasing promissory notes resulting in a damages of $113,620. No securities products were involved.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $500,000.00 on October 07, 2021.
Claimants allege that beginning in or around July 2015 until November 2018 they were misled into purchasing promissory notes resulting in a damages of $100,0000 to $500,000. Claimants seek damages, interest, costs and attorneys’ fees.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $800,000.00 on September 20, 2021.
Claimants allege that beginning in or around April 2014 until March 2019, they were misled into purchasing promissory notes resulting in a capital loss of approximately $800,000. Claimants seek damages, interest, costs and attorneys’ fees.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $8,000,000.00 on July 20, 2021.
15 Plaintiffs allege that beginning in 2015 through 2018, they were misled into investing between 50,000 and 4,600,000.00 in a Promissory Notes scheme and that the principal and interest due onthose Notes were not paid or not fully paid. Plaintiffs allege they collectively lost over $8M on their investments and seek damages, interest, costs and attorneys’ fees and other relief deemed just and proper.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $5,000,000.00 on April 30, 2021.
Chu was named in a customer complaint that asserted the following causes of action: breach of fiduciary duty; negligence; negligent misrepresentation; fraud; breach of contract – third party beneficiary; violation of Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 of the Securities and Exchange Commission; violation of the California Securities Act; and Violation of the California Elder Abuse Act.
We have a strong track record of advocating for victims of fraud when advisors obtain loans from clients or engage in securities sales via OBAs. Engaging in the sale of unapproved investment products, fake investments that conceal misappropriated funds, and other fraudulent activities is referred to as “selling away” in the industry—a severe violation of securities regulations. In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. Some of these investments may appear legitimate, but they often lead to Ponzi schemes or advisors engaging in fund misappropriation.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. Each firm is obligated to enforce measures that oversee brokers by monitoring advisors’ conduct and their interactions with clients. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Chu has been in the securities industry for more than 24 years. Chu has been registered as a Broker with Nylife Securities LLC since 1994.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.