Investor Seeks Half a Million Dollars in Dispute with Fred Chen

Fred Chen (CRD #: 5766069), a broker registered with Emerson Equity, allegedly violated federal securities laws, according to his BrokerCheck record, accessed on October 29, 2024. If you want to learn more about his alleged conduct as a broker, keep reading.

Investor Disputes

On August 27, 2024, an investor named Fred Chen in a dispute alleging breach of written contract, negligence and gross negligence, misrepresentation and omissions, and violations of the California Securities Act, federal securities laws, and FINRA Rules. The investor also alleged that Fred Chen violated his best interest obligations.

The investor seeks $500,000 in damages in this pending dispute.

In a pending dispute filed on August 20, 2024, an investor named Fred Chen in allegations of breach of contract, negligence and negligent misrepresentation, overconcentration, and violation of Regulation Best Interest with regard to investments purchased between 2020-2021.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2020

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

What are Blue Sky Laws?

Blue sky laws are state securities regulations that provide investors with an extra layer of protection against fraud, and often define what investments qualify as securities in the state.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that fit an investor’s financial goals. Overconcentration in a certain investment or sector violates this rule by exposing the investor to unnecessary risk.

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

Regulation Best Interest

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.

Background Information

Fred Chen has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Fred Chen is a registered broker and a registered investment adviser in California.

He has also worked for the following firms:

• Arque Capital (CRD#:121192)
• LPL Financial (CRD#:6413)
• UnionBanc Investment Services (CRD#:14455)

Kurta Law Can Help

If you worked with Fred Chen 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 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.