Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Jun (Justine) Zhou (Zhou) was discharged by her employer after being accused of offering securities not reported to the company. According to BrokerCheck records, Zhou is formerly registered with The Financial Industry Regulatory Authority (FINRA) member firm The Leaders Group. In addition, Zhou disclosed one regulatory complaint. If you have been a victim of Zhou’s alleged misconduct our firm may be able to assist you in recovering funds.
In November 2019 FINRA filed a regulatory action alleging that Zhou consented to the sanction and findings that she between April 2017 and June 2018, through a small real estate company she wholly owned and controlled, participated in the sale of $9,050,000 in membership interests in private real estate funds managed by a third party and $5,000,000 in a promissory note with that third-party fund manager. FINRA found that the fund membership interests and the promissory note were securities, involved 15 transactions, and seven investors. FINRA determined that Zhou’s real estate company received $179,000 in compensation from the third-party fund manager. In addition, FINRA alleged that on June 4, 2018, Zhou formed Zhou Fund I LLC (Zhou Fund), a private real estate fund managed by Zhou’s real estate company. Zhou is alleged to have subsequently filed a notice of exempt offering of securities with the Securities and Exchange Commission related to twelve transactions in June and July 2018 through which Zhou and her real estate company sold $2,000,000 in membership interests in Zhou Fund to twelve investors.