Feng Kou Chen, also known as Karl Chen, a former stockbroker with LPL Financial LLC in Campbell, California, consented to the entry of sanctions by the Financial Industry Regulatory Authority (FINRA) that Chen falsified eight customer account forms by adding his name as a beneficiary without the customers’ consent or approval from LPL Financial. FINRA also found that Chen sold mutual funds worth $1.9 million and purchased Unit Investment Trusts (UITs) totaling $1.7 million across approximately 60 customer accounts without prior authorization. Letter of Acceptance, Waiver, and Consent AWC No. 2022076913301 (October 21, 2024).
Chen was terminated by Consolidated Portfolio Review Corp on September 30, 2024, for failing to disclose details about his previous termination. Earlier, on October 28, 2022, LPL Financial LLC discharged Chen for unauthorized trading in customer accounts. LPL alleged Chen conducted transactions involving mutual funds and UITs without obtaining proper written authorization.
According to FINRA Public Disclosure, on August 22, 2023, a customer alleged Chen made unsuitable recommendations involving equity positions. Although initially denied, the dispute was settled on May 16, 2024, for $25,000, which was paid by LPL Financial without any financial contribution from Chen.
Chen’s most recent employment as a stockbroker was with LPL Financial LLC from July 21, 2021, to November 22, 2022. Before this, he was associated with Waddell Reed in Campbell, California, from September 3, 2015, to July 21, 2021.
