Chay Lapin Allegedly Misrepresented and Omitted Material Facts

Chay Lapin (CRD #: 6275140), a broker registered with FNEX Capital, is involved in two pending disputes, according to his BrokerCheck record, accessed on February 16, 2023. Keep reading to learn more about his alleged conduct as a broker.

Investor Dispute

In disputes filed on February 13, January 4, and January 25, 2023, investors named Chay Lapin in allegations of failure to conduct due diligence prior to his alleged recommendations of NP Skyloft DST, as well as the misrepresentation and omission of material facts related to this investment. These disputes are currently pending.

On November 13, 2019, an investor named Chay Lapin in a dispute alleging that the client’s two private placements were not performing as expected and that the client was “locked out” of certain funds. This dispute was denied by the firm.

Investors should know, however, that firms can deny disputes without an external review. Investors may be able to recover their losses by pursuing FINRA arbitration after a denial.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must consult the investor’s profile, which contains information about their age, tax status, and other investments.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence the purchase and sale of securities. This includes the misrepresentation or omission of information, such as an investment’s potential risks, returns, or fees.

Background Information

Chay Lapin has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Chay Lapin is a registered broker in all 50 states and the District of Columbia.

He has also worked for the following firms:

• Growth Capital Services (CRD#:124658)
• WealthForge Securities (CRD#:152550)
• Colorado Financial Service Corporation (CRD#:104343)
• Concorde Investment Services (CRD#:151604)

Kurta Law Can Help

If you worked with Chay Lapin and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.