National investment fraud lawyers KlaymanToskes is investigating Lei (Peter) Shen (CRD# 5769894) of NI Advisors after the Orange, California-based broker received a customer complaint alleging $1.5 million in damages due to investment recommendations that were unsuitable and over-concentrated, while registered with his previous firm Independent Financial Group.
If you suffered investment losses with Lei (Peter) Shen at NI Advisors and/or Independent Financial Group in Orange, California, you are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss recovery options. Our firm offers legal services on a contingency basis and we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
According to FINRA BrokerCheck, Lei Shen a/k/a Peter Shen has three customer complaints, including two settled in favor of the investors. The third and most recent complaint is pending and alleges investor damages of $1,500,000.
The investor alleges “Per Independent Financial Group’s U5 Amendment”, that investments were not suitable and were not in line with their investment objectives, the account was over-concentrated, and that there was not a reasonable basis for the recommendation or the strategy employed. The pending complaint was filed on January 25th, 2023 and relates to investment losses in Real Estate Investment Trusts (“REITs”) and Business Development Companies (“BDCAs”).
In 2021, Independent Financial Group was fined $200,000 by FINRA in connection with findings that the firm failed to supervise Alternative Investment recommendations in Non-traded Real Estate Investment Trusts (REITs) and Structured Notes. According to Independent Financial Group’s Alternative Investments and Direct Participation Programs Disclosure, listed on its website, the following is list of Alternative Investments offered by the firm (including REITs, Limited Partnerships, Oil and Gas programs and Tenant-in-Common offerings):
Lei Shen a/k/a Peter Shen has three additional customer complaints, settled in favor of investors in the collective amount of $915,000. One of the investor complaints, filed on August 2nd, 2021, alleged $950,000 in damages and that the REITs sold by Shen were not suitable while he was associated with Independent Financial Group and LPL Financial. The complaint was settled in favor of the investor for $625,000.
Another investor dispute filed on August 10th, 2021 against Shen alleged over $5,000 in damages in a letter dated September 10, 2021. The investor alleged that Independent Financial Group made a U5 amendment on October 22nd, 2021 for Mr. Shen’s removal. The customer also alleged unsuitable investment recommendations with regard to REITs and settled for $275,000.
Shen’s final investor complaint, filed on August 6th, 2014, alleged that while he was associated with Cetera Investment Services, the investor was allegedly promised a 20% return in 1 year and that her principal was guaranteed. The complaint was also settled in favor of the investor.
Stockbrokers and financial advisors must have a “reasonable basis” to determine whether the investment recommendation is suitable for particular investors, based on their understanding of the potential risks and rewards involved.
Due to the risks associated with Non-traded REITs and Alternative Investments, brokers/financial advisors may be responsible for any losses incurred by investors if they recommend unsuitable alternative investments based on the investor’s risk-tolerance, misrepresent material facts when making an investment recommendation, or over-concentrate the investor’s account in too many alternative investments.
If you suffered investment losses with Lei (Peter) Shen at NI Advisors and/or Independent Financial Group in Orange, California, you are encouraged to contact attorney Lawrence L. Klayman, Esq. at (888) 997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation to discuss your legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is also investigating NI Advisors and its financial professionals for claims that they may have made unsuitable GWG L Bond investment recommendations.
See our related blog posts:
“Life Savings Lost At Advice Of Shirley Wong And NI Advisors”
“Lose Money Investing With NI Advisors’ Peter Po on GWG L Bonds?”
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com