Joe Zheng Allegedly Made Unsuitable Recommendations
Joe Zheng (CRD# 2318835), a broker registered with J.K. Financial Services, recommended unsuitable investments, according to a recent investor dispute. MDF Law is investigating the Norco, California-based financial professional for similar conduct. If you are a current or former client with concerns about your accounts, call us for a free consultation.
More information about the allegations against Mr. Zheng is available below. The information in this post is based on a September 15, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Pending Dispute Seeks More Than $1.9 Million in Damages
On August 2, 2024, an investor lodged a dispute alleging that Mr. Zheng recommended unsuitable investments. The products at issue included stocks, mutual funds, and options, according to a disclosure on his BrokerCheck record. The dispute, which is still pending, seeks $1,935,000 in damages.
What Are Suitable Investments?
The dispute involving Mr. Zheng describes alleged violations of vital securities industry standards. For example, FINRA Rule 2111 requires brokers to recommend investments that are suitable for customers, based their investment goals and experience. FINRA Rule 2020, furthermore, proscribes the use of “manipulative, deceptive, or other fraudulent device[s] or contrivance[s]” in the recommendation of securities transactions. In other words, it means that brokers cannot offer misleading information regarding their recommendations. Finally there’s the SEC’s Regulation Best Interest, under which representatives must “exercise reasonable diligence, care, and skill, to understand the potential risks, rewards, and costs” of the products they recommend.
FINRA: J.K. Financial Broker Based in Norco, California
Joe Zheng launched his career as a broker in 1993. That year, he joined Montano Securities Corporation’s office in Orange, California. He remained at the firm until 1994, when he joined Daehan Securities’ branch office in Los Angeles, California. A few years later he left Daehan Securities for Midwest Discount Brokerage, eventually departing for J.K. Financial Services. He has remained at the firm since, working at its office in Norco, California. With 31 years of experience as a broker, he has completed nine industry exams, including the Series 4, the Series 27, and the Series 99TO.
Joe Zheng Complaints? Call MDF Law
If you have suffered losses on mutual funds, equities, or other investments recommended by Joe Zheng, you may be able to recover lost funds. Call MDF Law at 800-767-8040 to chat with an attorney about whether the FINRA arbitration process is right for your circumstances. Our team takes cases on a contingency basis, meaning clients only pay a fee if they win. We currently offer free consultations nationwide. You may have a limited window to file claim, so don’t delay: call MDF Law today.