Peter Shen, Emerson Equity Broker, Involved in REIT Dispute
Peter Shen (CRD# 5769894), a broker registered with Emerson Equity, recommended an unsuitable investment, according to a recent investor dispute. MDF Law is investigating the San Mateo, California financial advisor for similar conduct. If you suffered losses in your accounts, reach out to our team today for a free consultation about your options.
To learn more about Mr. Shen’s history as a broker, continue reading this post. The information below is sourced from his Financial Industry Regulatory Authority (FINRA) BrokerCheck record, examined on November 26, 2024.
Pending Dispute Stems from Non-Traded REIT
On October 22, 2024, an investor filed a dispute alleging that Mr. Shen recommended an unsuitable non-traded real estate investment trust. The dispute, which is still pending, seeks $440,000 in alleged damages.
Peter Shen Denies Allegations
Mr. Shen issued a “Broker Statement” regarding the above-described investor dispute, according to his BrokerCheck record. In this statement, he asserts that the claimant “cherry-picked” an investment in order to allege that it was unsuitable. “The allegations revolve around failure to perform appropriate due diligence,” the statement reads. “A preliminary review has not found evidence to support this claim, and, as such, it will be defended as without merit.”
Are Non-Traded REITs Risky Investments?
A FINRA Investor Alert issued in 2011 warned investors to exercise caution regarding potential investments in non-traded REITs. Like all REITs, these investments pool together funds from a group of investors. Then, it uses them to buy and operate real estate properties. Investors in non-traded REITS generally receive dividends from the income these properties generate. As their name indicates, these products are not traded on stock exchanges, which means they present certain risks compared to publicly traded REITs. For one thing, they are typically illiquid investments; they can also be difficult for investors to research. FINRA explains additionally that early redemptions may incur high costs for investors, and that non-traded REITs do not guarantee distributions.
Firms Settled Past Disputes
The above-described pending dispute is not the only one in Mr. Shen’s past. Between 2014 and 2023, three other parties of investors filed disputes involving his recommendations. These claims included allegations, among others, that he recommended unsuitable and over-concentrated investments. His current or former member firms settled the disputes for more than $1.4 million in total. A “Broker Comment” on one dispute asserts that while Mr. Shen was initially named as a respondent, “the customer subsequently withdrew his name.”
FINRA: Broker Based in San Mateo, California
Mr. Shen launched his career as a broker in 2010, according to his BrokerCheck profile. That year, he joined SagePoint Financial’s office in Irvine, California. He went on to work at number of firms over the course of his career, including Cetera Investment Services and LPL. He registered with his current firm, Emerson Equity, in October 2024, and currently works at its San Mateo, California office. Boasting 14 years of experience as a broker, he has completed four industry exams, including the Series 7 and the Series 6.
Investors Have Rights. MDF Law Defends Them
Did you lose money investing in non-traded REITs or other investments recommended by Peter Shen? You may be able to recovery losses through the FINRA arbitration process. For a free consultation with an attorney, call MDF Law at 800-767-8040. Our firm accepts cases on contingency—clients only pay a fee if they recover damages—and offers consultations nationwide.