Advisor Alert: Our Attorneys Are Investigating Chun Elmejjad For Investment Fraud

Last Updated: November 2024 (Falls Church, Virginia)

National securities fraud lawyers at Patil Law P.C. are investigating former Equitable Advisors broker Chun Elmejjad (CRD #2508442), who was recently barred by FINRA and faces allegations of misappropriating $500,000 in customer funds through undisclosed real estate investments.

Critical Insights About Former Falls Church, VA Financial Advisor Chun Elmejjad

• Advisor Name: Chun Suk Elmejjad
• CRD: 2508442
• Location: Falls Church, VA
• Former Employer: Equitable Advisors, LLC
• Registration Status: Barred by FINRA (April 2024)
• Recent Termination: Discharged by Equitable (November 2023)
• Customer Dispute: Pending FINRA arbitration seeking $500,000
• Regulatory Action: FINRA permanent bar from securities industry

Recent Regulatory Actions and Customer Disputes

FINRA Bar (April 2024)

• Permanently barred from association with any FINRA member
• Failed to respond to FINRA information requests
• Bar follows regulatory investigation into misconduct
• Case Number: 2023080407901

Customer Arbitration (July 2024)

• Allegations of misappropriating client loan funds
• Claims involving undisclosed real estate projects
• Seeking $500,000 in damages
• FINRA Case Number: 24-01541

Employment Termination (November 2023)

Discharged by Equitable Advisors for:

• Accepting loans from clients
• Undisclosed outside business activities
• Unauthorized private investments with customers
• Violation of firm policies

Analysis of Alleged Violations

Misappropriation of Funds

The pending arbitration centers on serious allegations:

• Converting client funds for personal use
• Unauthorized real estate investments
• Undisclosed business activities
• Breach of fiduciary duty

Regulatory Framework and Investor Protection

FINRA Rule 8210 (Provision of Information)

This rule grants FINRA authority to require members and associated persons to provide information related to investigations. Elmejjad’s failure to respond to FINRA’s requests led to her permanent bar from the industry. The rule is fundamental to FINRA’s ability to investigate potential misconduct and protect investors through regulatory oversight. Failure to comply with information requests is considered a serious violation that undermines FINRA’s regulatory function.

FINRA Rule 3270 (Outside Business Activities)

This rule requires registered persons to provide written notice to their firm before engaging in any outside business activity. The rule exists to prevent conflicts of interest and ensure proper supervision of all business activities that could impact customers. For activities like real estate investments with clients, the rule requires detailed disclosure and firm approval to protect against misuse of customer funds or relationships.

FINRA Rule 3240 (Borrowing From or Lending to Customers)

This rule prohibits registered persons from borrowing money from or lending money to customers unless specific conditions are met and the firm has written procedures allowing such arrangements. The rule is designed to prevent financial exploitation of customers and conflicts of interest that arise when brokers enter into personal financial arrangements with clients. Violations of this rule often indicate serious breaches of trust.

Professional Background

Elmejjad’s securities career included:

• Equitable Advisors, LLC (1995-2023)
• Over 28 years in the industry
• Series 24, 7, 6, 65, and 63 licenses

Red Flags for Investors

1. FINRA Bar – Permanent industry exclusion
2. Misappropriation Claims – Allegations of converting client funds
3. Unauthorized Activities – Undisclosed real estate investments
4. Regulatory Non-Cooperation – Failure to respond to FINRA
5. Recent Termination – Discharged for misconduct

Implications for Current and Former Clients

Investors who worked with Elmejjad should:

• Review all investment transactions
• Examine any loans or real estate investments
• Document unauthorized activities
• Consider legal consultation
• File FINRA complaints if warranted

Patil Law P.C. Will Help You Recover Your Investment Losses

If you have concerns about investments or transactions with Chun Elmejjad, contact Attorney Patil at (800) 950-6553 for a free consultation. Cases handled on contingency.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.