Financial Advisor Jun Zhou, The Leaders Group Inc. in Littleton, Colorado
Are you concerned about investments with Jun Zhou in Littleton, Colorado? If so, the securities attorneys at The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim.
According to the Financial Industry Regulatory Authority on November 11, the regulator has reportedly barred financial advisor Jun Zhou from associating with any FINRA member at any time for allegedly participating in 27 private securities transactions, with sales of $16,050,000 and selling compensation of $199,000, reportedly without providing written notice to, or receiving approval from, her Firm.
According to the Letter of Acceptance Waiver & Consent, between April 2017 and June 2018, Zhou, both individually and through a small real estate company she wholly owned and controlled, “participated in the sale of $9,050,000 in membership interests in private real estate funds managed by a third party and $5,000,000 in a promissory note with that third-party fund manager.”
FINRA says that the sales of these securities allegedly involved 15 transactions with seven investors. Zhou’s real estate company reportedly received $179,000 in compensation from the third-party fund manager.
Zhou purportedly formed Zhou Fund I LLC, a private real estate fund managed by Zhou’s real estate company on June 4, 2018, filing a notice of exempt offering of securities with the Securities and Exchange Commission. According to the AWC, the fund was purportedly related to twelve transactions in June and July 2018 through which Zhou and her alleged real estate company, City Wide Real Estate, Inc., purportedly sold $2,000,000 in membership interests in Zhou Fund to twelve investors, including three Firm customers.
In connection with these transactions, Zhou’s real estate company allegedly received from Zhou Fund I a sourcing fee of $20,000 and, beginning the first quarter of 2019, a quarterly asset management fee.
According to his FINRA BrokerCheck report, Zhou was reportedly affiliated with The Leaders Group Inc. in Littleton, Colorado from 2015 until 2018, when she was reportedly dismissed for the above allegations.
Investigating Potential Lawsuits
The White Law Group is investigating potential lawsuits regarding the liability that Zhou’s employers may have for failure to properly supervise her.
When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.”
Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to push.
If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.
We represent investors in FINRA arbitration claims in all 50 states, including Colorado. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Jun Zhou, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.