Christopher Shaw Suspended by FINRA for Alleged Unauthorized Trading
Christopher Shaw (CRD #: 5011382), a broker registered with Newbridge Securities, was recently suspended by FINRA, according to his BrokerCheck record, accessed on January 12, 2023. Investors may have also worked with him through Newbridge Financial Services Group. Keep reading to learn more about his alleged conduct as a broker.
FINRA Suspension
On November 7, 2022, Christopher Shaw consented to the entry of findings that he allegedly exercised his discretion in client accounts without written authorization.
A Letter of Acceptance, Waiver & Consent (AWC) alleges that, on April 23, 2020, Christopher Shaw executed 17 discretionary trades in 11 client accounts. The AWC alleges that Christopher Shaw mistakenly believed that he had discretionary authority for these accounts.
However, Christopher Shaw allegedly did not have clients’ written authorization to use discretion and Pruco Securities had not accepted these accounts as discretionary. In fact, Pruco Securities’ allegedly did not permit discretionary trading in its brokerage accounts at all.
The AWC concludes that these allegations qualified as violations of FINRA Rules 3260(b) and 2010.
FINRA Rule 3260
FINRA Rule 3260(b) requires brokers to receive written authorization from their clients before engaging in discretionary trading. Discretionary accounts must also be approved by the firm before this trading can occur.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Christopher Shaw consented to the following sanctions:
- $5,000 fine
- 15-business day suspension
His suspension ran from December 5 through December 23, 2022.
You can read the full AWC here.
Investor Disputes
On December 16, 2020, an investor alleged that Christopher Shaw made unsuitable investment recommendations. The client sought $500,000 in damages and received a settlement of $50,000.
A dispute filed on November 4, 2019, similarly alleged that Christopher Shaw recommended unsuitable investments. The client sought $350,000 and received a settlement of $125,000.
On July 8, 2019, an investor alleged Christopher Shaw recommended unsuitable alternative securities between November 2012 and May 2017. The client sought $450,000 and received a settlement of $175,000.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles describe an investor’s age, risk tolerance, and other characteristics.
Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.
Termination from Pruco Securities
On September 2, 2020, Christopher Shaw was fired from Pruco Securities following allegations that he executed discretionary trades in client accounts and inaccurately marked certain solicited trades as unsolicited.
Background Information
Christopher Shaw has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Christopher Shaw is a registered broker in North Carolina and South Carolina. He is also a registered investment adviser in North Carolina and Texas.
He has also worked for the following firms:
- Prudential Financial Planning Services (CRD#:5685)
- Pruco Securities (CRD#:5685)
- Kalos Management (CRD#:133025)
- Kalos Capital (CRD#:44337)
- Blackbird North America (CRD#:104176)
Kurta Law Can Help
If you worked with Christopher Shaw and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.
Loading...
Reload document 
Open in new tab