Written by The White Law Group• August 24, 2021• 2:43 pm• Blog, Current Investigations

NYLife Broker Felix Chu Barred from Securities Industry

FINRA Bars NYLife Broker Felix Chu after Alleged Promissory Note Scheme

According to the Financial Industry Regulatory Authority (FINRA), financial advisor Felix S. Chu (CRD#: 2427593) is reportedly barred from association with any FINRA member in all capacities after he reportedly failed to request termination of his suspension within three months of the date of the Notice of Suspension.

Chu reportedly has 3 pending customer complaints filed against him this year. Most recently, on July 20, 2021, Fifteen plaintiffs allege that beginning in 2015 through 2018, they were “misled into investing between 50,000 and 4,600,000.00 in a Promissory Notes scheme and that the principal and interest due on those Notes were not paid or not fully paid.” Plaintiffs further allege they collectively lost over $8M on their investments and seek damages, interest, costs and attorneys’ fees and other relief deemed just and proper, according to Chu’s FINRA broker profile.

In May 2021, a customer filed suit alleging that after April 2, 2018, they were persuaded to open a retirement account, into which they deposited at least $75,000.00 and subsequently withdrew $70,000.00 to invest in promissory notes. The complaint further alleged that the customers were induced “to open a joint bank account, later realizing deposited funds were withdrawn.” Plaintiffs also assert that they loaned money that was never repaid. The damage amount requested is $230,000.

Chu reportedly has 2 other complaints filed against him alleging misrepresentation in connection with promissory notes. Both complaints were reportedly settled, one for $125,000 and the other for $250,000.

According to Chu’s broker report, he was affiliated with the following FINRA registered firm:

03/16/1994 – 03/04/2019, NYLIFE SECURITIES LLC (CRD#:5167), PLEASANT HILL, CA

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential securities fraud lawsuits regarding the liability that Chu’s employers may have for failure to properly supervise him.

When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois.

We represent investors in FINRA arbitration claims in all 50 states including California. Our attorneys have recovered millions of dollars from many brokerage firms in the past.