Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Chun Elmejjad (Elmejjad) 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 Elmejjad was employed by Equitable Advisors, LLC at the time of the activity. If you have been a victim of Elmejjad’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $400,000.00 on January 22, 2025.
Client alleges former RR made unsuitable recommendations involving his Equitable life insurance policy and seeks losses with respect to an unapproved private investment sold by the RR and away from the firm.
FINRA BrokerCheck shows a pending customer complaint with a damage request of $500,000.00 on July 17, 2024.
Claimant alleges RR Elmejjad misappropriated funds that he loaned to RR Elmejjad in connection with real estate projects RR Elmejjad and her husband were involved in.
FINRA BrokerCheck shows a final customer complaint on January 24, 2024.
Respondent Elmejjad failed to respond to FINRA requests for information.
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. The industry defines “selling away” as a practice where a financial advisor offers investments in securities, companies, or promissory notes that have not been authorized by their brokerage 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.
Elmejjad has been in the securities industry for more than 28 years. Elmejjad has been registered as a Broker with Equitable Advisors, LLC since 1995.
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.
