Jia Cai Lewin Allegedly Engaged in Outside Business Activities, Recommending Customers Invest $6 Million into Three Chinese Pharmaceutical-related Companies

stockbroker fraud attorneyBetween January 2010 and October 2010, Jia Cai Lewin, formerly a General Securities Representative of J.P. Morgan Securities LLC (JPM), participated in private securities transactions by soliciting at least one J.P. Morgan customer to invest in three Chinese pharmaceutical-related companies without JPM’s knowledge or approval, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).

Lewin allegedly never informed JPM of her participation in her customer’s investments in these companies, even though JPM policies and procedures prohibited representatives from soliciting firm customers to participate in any private securities transaction not associated with the firm, whether or not the representative received compensation for doing so, the AWC further alleges.

Jia Cai Lewin Allegedly Participated in Private Securities Transactions, Fine and Suspended by FINRA

The AWC explains that NASD Rules prohibit an associated person from ”participat[ing] in any manner in a private securities transaction” unless, prior to participating in the transaction, the associated person provides “written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.”

Hence, as Lewin was associated with JPM, and allegedly participated in three private securities transactions by soliciting at least one JPM customer to invest approximately $6 million in three Chinese pharmaceutical-related companies without providing proper notice to JPM, Lewin reportedly violated NASD and FINRA Rules.

As a result FINRA has fined Lewin $30,000, and suspended her for two years from association with any FINRA member in any capacity, the AWC reports.

Investor Rights Lawyers Investigating

The Peiffer Rosca Wolf investment rights lawyers often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment misconduct may contact the investor rights lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Broker: Jia Cai Lewin

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Alan Rosca (1159 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.