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Investors Claim Felix Chu’s Investment Recommendation Led to Over $8 Million in Losses 

Jan 28, 2022 Investor Disputes

Felix Chu (CRD #:2427593), a formerly registered broker, is involved in five pending investor disputes, according to his BrokerCheck record, accessed on January 7, 2022. 

Unsuitability Allegations 

In 2021, Felix Chu was involved in four similar investor disputes. According to the allegations, he misled his investors when he advised that they invest in a promissory note scheme. According to the investors, this investment recommendation led to losses.  

Four separate allegations alleged losses of $500,000, $800,000, $8,000,000, and $230,000, respectively. 

Felix Chi was also involved in two similar disputes in 2019. Each accuses him of misleading clients when he recommended promissory notes that led to losses. The cases were collectively settled for $375,000. 

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. An investor's profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration. 

  • Investments can be unsuitable because they are high risk and likely to lose money. 
  • Securities may also be unsuitable because they are illiquid, meaning that they are intended to be held for an extended time, and investors may have to pay high fees to cash out. 
  • Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades. 
  • These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector. 

Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration. 

Other Investor Dispute 

On April 30, 2021, Felix Chu was named in a customer complaint alleging breach of fiduciary duty; negligence; negligent misrepresentation; fraud; breach of contract - third party beneficiary; violation of Sections 10(b) and 20(a) of the Securities Exchange Act, and Rule 10b-5 of the Securities and Exchange Commission; violation of the California Securities Act; and Violation of the California Elder Abuse Act. The damage amount requested is $5,000,000the case is still pending. 

FINRA Bar 

On December 4, 2019, Felix Chu was barred by FINRA.  

Felix Chu Background Information 

Felix Chu has passed the following exams: 

  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 6 - Investment Company Products/Variable Contracts Representative Examination 

Felix Chu has worked with the following firm: 

  • NYLIFE Securities (CRD#:5167) 

 Kurta Law Can Help 

If you have worked with Felix Chu and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com 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 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.