Bob Chung: SEC Charges Arete Advisor in Fraud

Chicago financial advisor Bob Chung (CRD# 6208569) was recently charged by the Securities and Exchange Commission in connection with allegations that he aided an alleged fraudulent scheme by two representatives of his member firm. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Arete Wealth.

A press release published by the SEC on January 17, 2025 describes the regulator’s allegations against Mr. Chung. As it explains, he was charged in connection with alleged violations by Arete representatives Joey Miller, Jeff Larson, and Randy Larson. These representatives allegedly sold more than $8 million in unapproved investments in Zona Energy, described by the SEC as “a sham oil-and-gas company.” They also allegedly “tried to hide the sales by communicating through means not subject to surveillance by Arete, such as through personal phones and email.”

As for Mr. Chung, the SEC alleged that as the firm’s Chief Compliance Officer and General Counsel he and the firm ordered the other defendants “ordered the three to obtain settlement agreements releasing the Arete entities and their management from liability relating to Zona.” However, according to FINRA, these settlement agreements “allegedly contained false and misleading statements as well as an illegal broad liability disclaimer.” Mr. Chung “claims that he did not read” these agreements, according to the allegations. The SEC has charged him with aiding and abetting the antifraud and compliance rule violations by Arete Wealth Advisors. The charges remain pending.

“As alleged in this case, after Arete’s personnel defrauded investors, Arete, as aided by Chung, compounded the harm to these investors by having them sign releases that were false and misleading,” said an SEC official in a statement issued about the charges. “Today’s action is a reminder to gatekeepers that if you find potential evidence of misconduct and take steps to cover it up, you may expose yourself to liability.”

Mr. Chung’s BrokerCheck report discloses two investor complaints. The most recent, filed in December 2024, alleges that as a representative of Center Street Securities, he recommended an unsuitable alternative investment. The pending complaint alleges damages of $100,000. In a statement included with the complaint’s disclosure, Mr. Chung wrote that the claim was “baseless” and that he “had nothing to do with this client or transaction.”

A second investor complaint, filed in November 2024, similarly alleged that as a Center Street representative, he recommended unsuitable alternative investments. The pending complaint alleges unspecified damages. “I vehemently deny the allegations and claims against me,” he wrote in a statement included with the disclosure. “I intend to vigorously defend these claims and pursue other legal remedies available to me based on these frivolous claims.”

According to the Financial Industry Regulatory Authority, Bob Chung holds 11 years of securities industry experience. Based in Chicago, Illinois, he has been registered as a broker and an investment advisor with Arete Wealth since 2013. He was previously registered with Center Street Securities from 2021 until 2023. (Information current as of April 13, 2025.)

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