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Missouri secretary of state orders unregistered agent to stop offering investment advice

He solicited clients through social media, forums and chat apps, including an app that provides tips and advice to Chinese immigrants
Credit: Getty Images/iStockphoto

JEFFERSON CITY, Mo. — Secretary of State Jay Ashcroft’s Securities Division has ordered an unregistered agent to cease and desist after he allegedly committed fraud by providing investment advice.

Since 2017, Yifei Lu has provided unregistered investment advice to people across the United States, including one Missouri resident. Lu is based in San Francisco.

Lu solicited clients through social media, forums and chat apps, including an app that provides tips and advice to Chinese immigrants, according to a news release.

He required clients to pay a fee of $300 for his advice and instructed them to deposit the funds into a PayPal account.

Lu never disclosed to the Missouri resident that he was not registered to give investment advice in Missouri, the release stated.

“Affinity scammers prey upon members of certain ethnic, religious or professional groups by building trust with those individuals who share the same affiliations,” Ashcroft said. “If you have any doubt at all about the person offering you an investment opportunity or advice, contact our office before investing.”

The division ordered Lu to prove why he shouldn’t be ordered to pay $75,000 in civil penalties, disgorgement, interest and investigation costs.

If you want to check the background and registration status of a financial adviser, call the investor protection hotline at 800-721-7996 or go online to file a complaint.

   

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