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Chelsea Deng is the Subject of Unsuitable Private Placement Allegations

Chelsea Deng (CRD #: 4179306), a broker registered with Morgan Stanley, is the subject of an investor dispute, according to her BrokerCheck record, accessed on December 6, 2023. Keep reading if you have questions about her alleged conduct as a broker. 

On September 19, 2023, an attorney for an investor alleged that Chelsea Deng unsuitably concentrated the customer in illiquid, private placements. They further alleged misrepresentation. Private placements are often unsuitable due to their lack of liquidity and high risk. 

FINRA Rule 2020 – Misrepresentation

FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees. Brokers must always disclose the risks associated with illiquid investments, such as early withdrawal fees. 

What is Overconcentration? 

Overconcentration occurs when a broker places an unsuitable percentage of a portfolio in a particular stock or asset. This is also called “failure to diversify” and it is a type of broker misconduct. With too much of a portfolio in a particular stock or asset, the investor will be exposed to unnecessary risk. 

Background Information 

Chelsea Deng has passed the following exams: 

  • Series 66 Uniform Combined State Law Examination 
  • SIE – Securities Industry Essentials Examination 
  • Series 31 Futures Managed Funds Examination 
  • Series 7 General Securities Representative Examination 

She is a registered broker in eight states and is a registered investment adviser in California. 

Kurta Law Can Help 

If you have worked with Chelsea Deng and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that 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. Do not let securities fraud go unchecked. Start your recovery process today.