Fred Chen Allegedly Misrepresented Investments

Fred Chen (CRD# 5766069[1]), a broker registered with Emerson Equity, misrepresented investments, according to investor disputes. MDF Law is investigating the Irvine, California-based financial professional for similar conduct. If you suffered losses in your accounts, contact us for a free consultation.

To learn more about the allegations against Mr. Chen, continue reading this post. The information herein is based on an October 14, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

Pending Dispute Seeks $500,000

In August 2024, two parties of investors filed disputes involving Mr. Chen. These disputes include allegations that he engaged in negligence, misrepresented material facts, over-concentrated investments, violated Regulation Best Interest, breached contract, and breached his fiduciary duty. While one dispute seeks unspecified damages, the other seeks damages of at least $500,000. Both claims are still pending.

Past Disputes Alleged Rule Violations

The above-described pending dispute is not the only one in Mr. Chen’s professional history. According to his BrokerCheck record, another investor lodged a dispute involving him on December 1, 2022. In this case, the claim alleged negligence, misrepresentation and omissions, unsuitable recommendations, fraud, and violations of FINRA Rules 2010, 2020, 2110, 2114, 2310, 3010, and 3110. In June 2024 his member firm settled the dispute for $30,000.

FINRA Rules Protect Investors

FINRA rules protect investors against the forms of broker misconduct alleged in the disputes involving Mr. Chen. Under FINRA Rule 2010[2], for example, they must observe high standards of commercial honor and just and equitable principles of trade. FINRA Rule 2020[3], meanwhile, prohibits them from using “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” to solicit or conduct securities transactions. Then there’s Rule 2111[4], which requires brokers to conduct reasonable diligence to ensure their recommendations are appropriate for a customer’s profile. 

FINRA: Fred Chen Based in Irvine, California

Fred Chen launched his career as a broker in 2013, when he registered with UnionBanc Investment Services in Irvine, California. He went on to work at LPL Financial in Whittier, California, then Arque Capital in Irvine, California. He joined his current member firm, Emerson Equity, in 2010, and remains at the firm’s Irvine office. With seven years of experience as a broker, he has completed five industry exams, including the Series 66 and the Series 7. 

Broker Fraud Victim? Speak to a Lawyer for Free

If you suffered losses on investments recommended by Fred Chen, call MDF Law at 800-767-8040 to discuss your recovery options with an investment fraud lawyer[5]. Our team has proven experience navigating the complexities of FINRA arbitration proceedings. Over the years, we’ve secured tens of millions in recoveries for our clients. Not only do we accept cases on a contingency basis, we also provide free consultations across the US. Don’t delay: your window to file a claim may be limited. Call MDF Law today.