Last Updated: February 2024 (Beverly Hills, CA)
Chelsea Deng Investigation Summary
Here’s what you need to know about Beverly Hills, CA, stockbroker Chelsea Deng:
- Name: Chelsea Deng
- Current Employer: Morgan Stanley
- Previous Firms: Merrill Lynch Pierce Fenner & Smith
- Function: Stock Broker/ Financial Advisor/ Registered Investment Advisor
- Aliases: Deng Zhongqun
- Primary Location: Beverly Hills, CA
- CRD 4179306
- Can Chelsea Deng be sued in FINRA arbitration: Yes
- Sanctioned by FINRA: No
- Pending Customer Dispute Seeks Damages of $3.5 Million
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Chelsea Deng As Your Stockbroker?
A customer of Merrill Lynch filed a FINRA arbitration in 11/2023 alleging that Chelsea Deng, also known as Deng Zhongqun, made unsuitable recommendations and certain misrepresentations in regards to investments in private placements (PIPES). Damages of $3.5 million are sought in this currently pending matter.
What Are PIPEs? PIPEs refer to private placements where an already public company sells shares directly to accredited investors.
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer.
Allegations of Broker Misconduct Against Chelsea Deng
Customers of Chelsea Deng have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable Investment Recommendation to invest in private equity (PIPEs)
- Misrepresentation
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
Recover Your Investment Losses Now With Rex Securities Law
Private Placements under Reg D: What is a Private Placement? According to the U.S. Securities and Exchange Commission (SEC):
“Under the federal securities laws, a company may not offer or sell securities unless the offering has been registered with the SEC or an exemption from registration is available. Offerings exempt from the SEC’s registration requirements pursuant to Securities Act Section 4(a)(2) or its safe harbor under Regulation D of the Securities Act are often referred to as private placements.”
The SEC warns that unregistered offerings may be utilized to conduct investment scams and that investors should have the ability to weather a total loss in these illiquid investments. See this SEC Investor Alert about red flags to watch out for in unregistered offerings.
If you have suffered investment losses in an account handled by Chelsea Deng ( Deng Zhongqun), contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
