Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Felix Chu (Chu) was investigated by a securities regulator for selling promissory notes to clients among other allegations. According to records kept by The Financial Industry Regulatory Authority (FINRA) Chu left his prior employer, NYLife Securities, LLC (NYLife Securities) prior to several customer complaints concerning the sale of promissory notes. If you have been a victim of Chu’s alleged misconduct our firm may be able to assist you in recovering funds.
In December 2019 FINRA sent Chu requests for information concerning his activities. Chu failed to respond to the requests and was automatically barred from the brokerage industry.
In October 2019 a customer complained that Chu violated the securities laws by alleging that Radoo engaged in sales practice violations related investments beginning in March 2016 until September 2018, she and her late husband were misled into purchasing promissory notes for $305,000. Plaintiff further alleges that they were misled into remitting a check for $75,000 to purchase what they believed to be additional insurance. The claim is currently, pending and the the investors are seeking compensatory damages in excess of $380,000, lost income, interest, punitive damages and attorneys’ fees.
Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs. The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws. 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. Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.