Financial Advisor Misconduct Attorney

Are You A Victim of Investment Adviser Fraud? SEC Accuses Upright Financial Group and Founder David Yow Shang Chiueh Of Defrauding Investors of $1.6M

If you believe you were the victim of investment adviser fraud, contact Shepherd Smith Edwards and Kantas Financial Advisor Misconduct Attorney (investorlawyers.com) today. We are looking into allegations that RIA Upright Financial Corp., its Upright Investments Trust, and found David Yow Shang Chiueh not only defrauded investors of $1.6M but also violated a settlement agreement with the US Securities and Exchange Commission (SEC).

Upright and Chiueh reached a settlement agreement with the regulator a few years ago over allegations that the RIA firm and its founder made investments not in line with its classification as a diversified investment company and its own concentration policy. Instead, per the SEC’s investigation, over 25% of their Upright Growth Fund’s assets were invested in one industry over several years. This is known as overconcentration and can lead to serious investment losses.

The Commission fined Upright and Chiueh $90K and told them to pay over $290K of disgorgement. They were supposed to stop any investment adviser misconduct.

Instead, the SEC contends, both the RIA firm and its New Jersey investments adviser continued committing fraud until at least last June when they allegedly failed to sell significant stock so as to come into alignment with their concentration policy. A jury trial is expected.

Representing Investors With Loss Recovery Claims Against Registered Investment Advisers

Shepherd Smith Edwards and Kantas Financial Advisor Misconduct Attorney represents investors who have sustained losses because of investment adviser fraud or negligence. Sometimes, an investment adviser may also be registered with a FINRA broker-dealer, which could lead to grounds for a case against that firm.

Overconcentration As Financial Advisor Misconduct 

Financial advisors are supposed to take into account proper diversification when managing clients’ assets and portfolios. When overconcentration leads to too much of an investor’s portfolio being heavily focused on one investment, asset type, or industry sector, the risk of loss goes up. Excessive concentration can also be a problem when an investment advisory firm that manages funds heavily concentrates its funds’ assets in one industry.

Proving overconcentration can be difficult, which is why you want seasoned investment adviser fraud lawyers representing you. Shepherd Smith Edwards and Kantas Financial Advisor Misconduct Attorney have been fighting for investors against brokerage firms and investment advisers for decades. We know how to determine the cause of your portfolio losses and whether you should sue for damages.

While regulatory cases can be helpful in holding offenders accountable, this doesn’t always mean that investors who were harmed will get their money back through these legal actions. That is why you may want to consider filing your own investment loss recovery claim to maximize your chances for a full recovery.

Contact Our Financial Advisor Misconduct Attorney Team Today:

With over a century’s worth of combined experience in securities law and the securities industry, we have represented investors in every kind of case—regarding more than legal 1000 matters—through arbitration, mediation, negotiation, and litigation proceedings.  Call (800) 259-9010 or fill out this form to set up your free, initial case assessment.