Haselkorn & Thibaut has opened an investigation into Red Bank, New Jersey financial advisor Steven Cho (CRD# 2610257) and his practices while registered with HJ Sims & Company. This investigation comes in light of investor complaints that raise important questions about investment recommendations and suitability standards.
Understanding Steven Cho’s Background at HJ Sims & Company
Table of Contents
Steven Cho currently serves as a vice president at HJ Sims & Company, where he has been registered as a broker since 2019 and as an investment advisor since 2021. With 16 years of securities industry experience, Mr. Cho has built his practice in Red Bank, New Jersey, promoting a personalized approach to financial planning.
His professional philosophy centers on listening to clients’ needs and creating customized financial plans. According to his firm profile, he describes himself as a “financial therapist” who believes that “There is no cookie-cutter plan when it comes to financial planning; all individuals are uniquely different and should be treated as such.”
Professional Qualifications and Registrations
Steven Cho has demonstrated his commitment to the securities industry by passing four key qualifying examinations:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
His registration history spans multiple states, including Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Indiana, Maine, New Jersey, New York, North Carolina, Pennsylvania, Puerto Rico, Tennessee, Texas, and Virginia.
Investor Complaints: A Closer Look
Financial Industry Regulatory Authority (FINRA) records reveal two investor complaints filed against Steven Cho, both stemming from his time at David Lerner Associates:
| Year Filed | Allegation | Damages/Resolution |
|---|---|---|
| September 2021 | Unsuitable mutual fund recommendation | $378,679.92 alleged damages (Denied) |
| 2021 | Misrepresentation and unsuitable private placement recommendation | $13,000 settlement |
Key Red Flags for Investors to Consider
When evaluating any financial advisor’s background, certain patterns deserve careful attention. In Steven Cho’s case, investors should be aware of several important factors:
1. Multiple Suitability Complaints: Both complaints against Mr. Cho involve allegations of unsuitable investment recommendations. This pattern suggests potential issues with matching investment products to client needs and risk tolerances.
2. Significant Alleged Damages: The September 2021 complaint alleged damages of nearly $380,000, representing a substantial sum that could significantly impact an investor’s financial future.
3. Settlement History: While one complaint was denied, the other resulted in a $13,000 settlement, indicating that the firm found it appropriate to compensate the investor rather than contest the claim.
4. Similar Allegation Types: Both complaints involve suitability concerns – one regarding mutual funds and another concerning private placements. This consistency in complaint types may indicate a pattern in recommendation practices.
Understanding Suitability in Financial Advising
Suitability is a fundamental principle in financial advising. Financial advisors have a duty to recommend only those investments that align with their clients’ financial objectives, risk tolerance, and overall financial situation. When advisors fail to meet this standard, investors may suffer significant losses.
Key factors that determine suitability include:
- Investment objectives (growth, income, preservation of capital)
- Risk tolerance and ability to withstand losses
- Time horizon for investments
- Liquidity needs and access to funds
- Overall financial situation including income, net worth, and other investments
What This Means for Current and Former Clients
If you have worked with Steven Cho at HJ Sims & Company or during his tenure at David Lerner Associates, it may be prudent to review your investment portfolio and transaction history. Consider whether:
- Your investments aligned with your stated risk tolerance
- You understood the risks associated with recommended products
- The investments met your financial objectives
- You experienced unexpected losses or volatility
- Complex products were adequately explained
Your Rights as an Investor
Investors who have suffered losses due to unsuitable investment recommendations have legal rights and potential remedies. The securities industry maintains strict standards for advisor conduct, and violations of these standards may entitle investors to recover their losses.
Important steps to protect your interests include:
- Documenting all communications with your advisor
- Gathering account statements and transaction confirmations
- Reviewing any written recommendations or investment proposals
- Calculating your actual losses including fees and opportunity costs
- Acting promptly as there are time limits for filing claims
Take Action to Protect Your Financial Future
If you have concerns about investments recommended by Steven Cho or any other financial advisor at HJ Sims & Company, now is the time to seek professional guidance. Understanding your rights and options is crucial for protecting your financial future and potentially recovering losses.
Haselkorn & Thibaut is a national securities fraud law firm with over 50 years of experience helping investors recover losses from unsuitable investment recommendations. With a 98% success rate and millions recovered for clients, the firm operates on a no recovery, no fee basis, ensuring that investors can pursue their claims without upfront costs.
Don’t wait to explore your options. Contact Haselkorn & Thibaut today at 1-888-628-5590 for a free, confidential consultation about your investments with Steven Cho or HJ Sims & Company. Their experienced attorneys can review your situation, explain your rights, and help you understand the best path forward. Time limits apply to investment loss claims, so reaching out promptly is essential to protecting your interests.
