RBC Capital Markets Broker Joseph Chu Accused of Overconcentrating Customers’ Accounts in Oil and Gas Investments

Connecticut Investment Advisor is Also Part of RBC Team Chu, Philipps, and Associates  

Joseph Ijong Chu, an RBC Capital Markets stockbroker, has been named in a number of customer disputes this year. Chu is also a registered investment advisor with the broker-dealer. He is part of the RBC  team known as Chu, Phillips, and Associates, which offers products and services through City National Bank in Stamford, Connecticut. 

Chu’s customers are blaming him for the investment losses they suffered when he allegedly overconcentrated their accounts in risky oil and gas investments that were unsuitable for them. 

At Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), our investment fraud attorneys are investigating complaints involving RBC Capital Markets broker, Joseph Chu. Contact us today so that we can help you explore your legal options.

Investors Claim Unsuitability Involving Marathon Oil, California Resource, & Others

According to his BrokerCheck record, Chu has worked in the industry for 18 years. Before joining RBC Capital, he was a Merrill Lynch, Pierce, Fenner & Smith registered representative for 16 years beginning in 2002.

At least three Financial Industry Regulatory Authority (FINRA) arbitration claims involving Chu were brought during the second half of this year, including:  

  • 11/2020: An investor contends that he lost over 65% of the value of his Employee Pension Plan IRA. He is now requesting over $367K in damages after the RBC Capital Markets financial advisor allegedly failed to properly diversify his account. Joseph Chu is accused of overconcentrating the claimant’s account in oil and gas and energy investments that were unsuitable for the latter’s risk tolerance level and investment goals. 
  • 8/2020: This investor is seeking $1.6M in damages for losses in oil and metal investments, which were not unsuitable given the claimant’s goals.
  • 7/2020: These claimants say that Chu overconcentrated their account in risky and unsuitable energy and material sector investments. They are seeking $500K in damages.

Chu and another RBC Capital Markets broker, Christopher Phillips, also of Chu, Phillips, and Associates, have been under scrutiny for purportedly investing many of their clients in risky, speculative oil and gas investments, including:

  • Marathon Oil (NYSE: MRO)
  • Denbury Resources (NYSE: DNR)
  • California Resource Corporation ( NYSE: CRC) and others. 

Both Denbury Resources and California Resource Corporation has filed for bankruptcy protection. 

Broker-Dealers can be held liable for failing to properly supervise their registered representatives. Customers of RBC Capital broker Joseph Chu or Christopher Phillips may have grounds for pursuing a brokerage firm negligence case to recover their losses.

Oil and Gas Investments

Investing in the oil, gas, energy, or metal sectors is highly risky and is usually not suitable for many investors unable or unwilling to take on too much risk. These areas have especially taken a huge financial hit this year with COVID-19 roiling the markets while driving demand and prices down. 

SSEK Law Firm has been hard at work helping oil and gas investors to recover their losses. Contact our investor fraud lawyers at (800) 259-9010 if you suspect that RBC Capital broker Joseph Chu or another financial advisor overconcentrated your portfolio or made unsuitable investment recommendations that may have caused you to sustain unnecessary losses.

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