Broker Kee Chan recently settled a case with the Securities and Exchange Commission (SEC), which accused him of mortgage-backed securities fraud while he was registered as a broker/dealer with Nomura Securities International, Inc. in New York, New York from August of 2009 through June of 2012.
Kee Chan bought and sold commercial mortgage-backed securities (CMBS) when he was co-head of the CMBS trading desk at Nomura.
The SEC’s complaint said Chan deliberately lied to and misled his customers about:
- The prices of the securities when they were sold or purchased
- The bids and offers Nomura made or received on the securities
- The difference between the purchase and sale prices
- The owner of the securities. According to customers, Nomura said he was still negotiating with a third party, when in reality, Nomura had already acquired the security.
The mortgage-backed securities fraud actions by Kee Chan generated more than $750,000 in additional trading profits for Nomura, and Kee Chan received bonus money based on the fraudulent practices as well.
As part of the mortgage-backed securities fraud settlement, Kee Chan agreed to pay a $150,000 penalty, $11,758 in interest and $51,965 in disgorgement.
According to his BrokerCheck report through the Financial Industry Regulatory Authority (FINRA), Kee Chan did not admit or deny the allegations, but agreed to a three-year bar from working as a broker and investment adviser. After that time is up, he will regain the right to reapply.
If you invested money with Chan and were a victim of mortgage-backed securities fraud, the attorneys at Meyer Wilson would like to speak with you. Mortgage-backed securities are generally too risky for the average investor, but unscrupulous advisers can be very convincing when selling the rewards.
Yields on mortgage-backed securities can plummet if borrowing costs go up or the market freezes due to worried investors.
If you believe you were the victim of stockbroker misconduct resulting in significant losses, contact Meyer Wilson today for a free and confidential consultation.