Stella Lu: $1 Million Complaint Against Former Sunnyvale Advisor

Former Transamerica Financial Services advisor Stella Lu (CRD# 6270026) recently received an investor complaint alleging her recommendations led to seven-figure losses. Financial Industry Regulatory Authority records show that she was most recently registered as a broker and an investment advisor in Sunnyvale, California. 

Ms. Lu’s BrokerCheck report discloses one investor complaint. Filed in May 2022, it alleges that as a representative of Transamerica Financial Services, she recommended unsuitable and over-concentrated “off-shore investments” that sustained losses. The pending complaint alleges damages between $1 million and $5 million.

Over-concentration, also known as concentration or failure to diversify, denotes a broker’s failure to invest a client’s portfolio among a range of assets, mitigating the investor’s risk if any one investment or class experiences losses. “A diversified portfolio,” FINRA states, “tends to be harder to achieve than simply following the mantra: don’t put all your investment eggs in one basket.” FINRA recommends investors avoid the risks of over-concentration by ensuring that their portfolios are diversified across and within major asset classes; by rebalancing their portfolios on a routine basis; by looking closely at the mutual funds and exchange-traded funds in their holdings; and by keeping track of their investments’ liquidity.

According to the Financial Industry Regulatory Authority, Stella Lu holds four years of securities industry experience. Most recently based in Sunnyvale, California, she was last registered as a broker with Transamerica Financial Advisors from January 2019 until November 2019. Her previous registrations include Cetera Investment Services (Cupertino, California; 2015-2017) and Transamerica Financial Advisors (Elk Grove, California; 2013-2015). Her credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; the Uniform Investment Adviser Law Examination, or Series 65. She is currently not registered as a broker or as an investment advisor. (Information current as of September 1, 2022.)

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