Chang Jen Vung, a broker and financial advisor registered with the Financial Industry Regulatory Authority (FINRA) through the Flushing, New York office of Cetera Investment Services LLC, has faced several complaints from investors. These complaints raise concerns about unsuitable investment recommendations and potential fraud. Let’s take a closer look at the allegations against Chang Jen Vung.
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Our Expertise in Non-Traded Real Estate Investment Trusts (REITs)
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A self-employed investor from New York recently filed an arbitration lawsuit against Cetera Investment Services and its broker, Chang Jen Vung, with the Financial Industry Regulatory Authority (FINRA). The claimant incurred losses in non-traded REITs and is seeking up to $500,000 in damages. At Haselkorn & Thibaut, we specialize in representing investors in FINRA arbitration cases involving non-traded REITs. Our experienced New York non-traded REIT attorneys are dedicated to fighting for your rights.
The Allegations Against Cetera Investment Services and Chang Jen Vung
The claimant alleges that Vung, the broker from Cetera Investment Services, advised him to focus his portfolio on high-commission, illiquid items due to their shared cultural affinity. Among the investments recommended were Healthcare Trust Inc., Peakstone Realty Trust, and NorthStar Healthcare Income REIT.
Here are the disclosure events listed in CHANG JEN VUNG CRD#: 5347816 BrokerCheck Record:
- Customer Dispute – Settled
- Reporting Source: Broker
- Employing firm when activities occurred which led to the complaint: Cetera Investment Services LLC
- Allegations: Claimant alleges breach of contract, fraud, misrepresentation, breach of fiduciary duty and violations of FINRA rules.
- Product Type: Real Estate Security
- Alleged Damages: $200,000.00
- Date Complaint Received: 01/02/2019
- Is this an oral complaint? No
- Is this a written complaint? No
- Is this an arbitration/CFTC reparation or civil litigation? Yes
- Arbitration/Reparation forum or court name and location: FINRA
- Docket/Case #: Arbitration Number 18-04351
- Filing date of arbitration/CFTC reparation or civil litigation: 12/22/2018
- (Page 9)
- Customer Dispute – Closed-No Action / Withdrawn / Dismissed / Denied
- Reporting Source: Broker
- Employing firm when activities occurred which led to the complaint: CETERA INVESTMENT SERVICES LLC
- Allegations: Client alleges she wanted a safe investment and was placed in a high-risk, high-expense investment. Client is upset about performance, does not want to pay IRA fees.
- Product Type: Real Estate Security
- Alleged Damages: $5,000.00
- Date Complaint Received: 06/28/2021
- Complaint Pending? No
- Status: Denied
- Status Date: 08/13/2021
- Settlement Amount: Not provided
- Individual Contribution Amount: Not provided
- Is this an oral complaint? No
- Is this a written complaint? Yes
- Is this an arbitration/CFTC reparation or civil litigation? No
- (Page 11)
- Customer Dispute – Pending
- Reporting Source: Broker
- Employing firm when activities occurred which led to the complaint: CETERA INVESTMENT SERVICES LLC
- Allegations: Claimant alleges they were invested in unsuitable investments.
- Product Type: Other: Real Estate Investment Trusts (REITS)
- Alleged Damages: $100,000.00
- Date Notice/Process Served: 05/06/2022
- Arbitration Pending? Yes
- Arbitration/CFTC reparation claim filed with (FINRA, AAA, CFTC, etc.): FINRA
- Docket/Case #: 22-00956
- (Page 12)
Please note that these are allegations and may not have been proven or formally adjudicated.
Understanding Privately Traded Investments and Their Risks
Privately traded investments, such as the REITs mentioned above, are unregistered securities typically offered to a select group of accredited investors. These investments often lack liquidity, provide limited financial disclosures, and involve significant risks. They may also include substantial commissions and upfront fees.
For example, Northstar Healthcare Income charges steep commissions and fees, with only 86.4% of investor revenues allocated to real estate investments. Despite the risks and drawbacks, Cetera Investment Services failed to suggest publicly-traded REITs, which are more readily accessible and transparent.
Cetera Investment Services’ Failure to Protect Investors
The claimant was unable to recognize the inappropriate nature of the investments recommended by his Cetera broker, as he was misled about their risks. Moreover, the financial advisor repeatedly assured him that his investments were performing well, leading to potential losses of his entire portfolio.
Holding Cetera Investment Services Accountable
The claimant asserts that Cetera Investment Services and Chang Jen Vung breached their fiduciary duties and that the broker-dealer failed to adequately supervise its financial advisor. With 14 years of experience as a broker, Vung has had prior disclosures, including an unsuitability claim in June 2021 and a resolved customer case in 2019 involving allegations of deception and fraud.
Choose Haselkorn & Thibaut to Fight for Your Rights
At Haselkorn & Thibaut, we have been representing investors for over 30 years and have a proven track record of success. We have filed numerous FINRA arbitration cases against Cetera Investment Services, not only for inappropriate marketing of REITs.
Contact us today for a free consultation at 1-800-856-3352. Remember, we work on a “no recovery, no fee” basis. Our dedicated securities attorneys are ready to help you recover your investment losses. Call now, and let us fight for your rights.
