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Investor Seeks $1.5 In Damages in Dispute With Lei Shen

Lei Shen (CRD #: 5769894), a broker registered with Ni Advisors, allegedly made unsuitable investment recommendations, according to his BrokerCheck record, accessed on February 21, 2023. Read on to learn more about his alleged conduct as a broker.

Investor Disputes

On January 6, 2023, an investor alleged that Lei Shen overconcentrated them in unsuitable investments that did not align with their investment objectives. The client further alleged that Lei Shen did not have a reasonable basis for his recommendations or his investment strategy. The investor seeks $1.5 million in this pending dispute.

In a dispute filed on August 2, 2021, an investor alleged that Lei Shen facilitated unsuitable investments. The client sought $950,000 in damages and received a settlement of $625,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe their risk tolerance, age, and other characteristics.

Investment strategies also need to match an investor’s goals. Overconcentration, for example, may be an unsuitable strategy for investors who don’t want to be exposed to a high degree of risk.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.

Background Information

Lei Shen has passed the following exams:

  • 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

Lei Shen is a registered broker in California, New Jersey, and New York.

He has also worked for the following firms:

  • Independent Financial Group (CRD#:7717)
  • LPL Financial (CRD#:6413)
  • Cetera Investment Services (CRD#:15340)
  • Primevest Financial Services (CRD#:15340)
  • SagePoint Financial (CRD#:133763)

Kurta Law Can Help

If you worked with Lei Shen and you have concerns about your investments, please contact us today at 877-600-0098 or 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.