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Charles Zheng: Investor Alleges Wells Fargo Advisor Borrowed Money

A recent investor complaint against San Ramon, California financial advisor Charles Zheng (CRD# 5517193) alleges that his conduct resulted in five-figure damages. Financial Industry Regulatory Authority records show that Mr. Zheng is currently registered as a broker and an investment advisor with Wells Fargo Clearing Services. 

Pending Complaint Alleges Suitability Violations

Mr. Zheng’s BrokerCheck report discloses two investor complaints. The most recent is a claim filed by Wells Fargo clients in October 2022. It alleges that he “recommended unsuitable investments, borrowed money from them, and repaid the loan without interest.” The pending complaint alleges damages of $75,000.

The second investor complaint described in his BrokerCheck report was filed in 2018. In this complaint, a Wells Fargo client alleged that Mr. Zheng “should have invested funds more conservatively as well as provided more guidance as the risks to the investments.” The complaint alleged unspecified damages and was denied by the firm.

What Are Suitable Investments?

Brokers like Mr. Zheng are bound by strict industry standards requiring them to recommend investments in line with their clients’ objectives and backgrounds. FINRA Rule 2111 specifically establishes this standard, known as suitability. It states that FINRA-associated brokers must “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for an investor’s profile, a set of information that includes their financial situation, risk tolerance, investment goals, net worth, and more. An investment in a high-risk, illiquid real estate investment trust, for instance, for instance, would likely be considered unsuitable for an investor with a low risk tolerance and conservative investment goals. Brokers who recommend their customers make unsuitable investments can be held liable in the event of losses.

Zheng Has More Than a Decade of Experience as a Broker

Charles Zheng has 14 years of experience as a broker, according to the Financial Industry Regulatory Authority. Based in San Ramon, California, he has been a representative of Wells Fargo Clearing Services since 2015. His prior registrations include JP Morgan Securities and Morgan Stanley. He has passed six securities industry exams and is licensed in Arizona, California, Florida, and other states.  (Information current as of November 16, 2022.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.

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