Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Christopher John Shaw, a/k/a Chris Shaw (CRD # 5011382) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into the use of unauthorized discretion in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Shaw.
Registration Background for Christopher Shaw
Mr. Shaw first became registered in the securities industry in 2005. FINRA BrokerCheck shows that he is currently registered with Belmont, NC based Newbridge Securities Corporation (CRD # 104065) and Newbridge Financial Services Group, Inc. (CRD # 130814) His prior registrations and/or employments include Prudential Financial Planning Services (CRD # 5685) and Pruco Securities LLC (CRD # 5685) from May 2019 to September 2020, and Kalos Management (CRD # 133025) from January 2017 to May 2019.
FINRA’s Allegations Against Christopher Shaw
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated November 7, 2022 (No. 2020067955001), Mr. Shaw consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On April 23, 2020, [Mr.] Shaw exercised discretion without written authorization to execute 17 trades in 11 customer accounts”;
- “Although [Mr.] Shaw mistakenly believed he had discretionary authority for the accounts, [Mr.] Shaw did not have the customers’ written authorization or Pruco’s acceptance to trade the accounts on a discretionary basis”;
- “…Pruco did not permit the use of discretion in its brokerage accounts”; and
- By virtue of his actions, Mr. Shaw violated FINRA Rule 3260(b) regarding discretionary trading and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Christopher Shaw from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s November 7, 2022 AWC also indicates that Mr. Shaw consented to the following sanction(s):
- A 15-business day suspension from association with any FINRA member in all capacities; and
- A fine in the amount of $5,000.00.
Christopher Shaw Has A Prior History of Securities Industry Customer Complaints
In addition to Christopher Shaw being suspended by FINRA from the securities industry after an investigation into the use of unauthorized discretion in customer accounts, FINRA BrokerCheck for Mr. Shaw reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations, including but not limited to the following:
- On March 25, 2021, a customer-initiated arbitration was filed naming Mr. Shaw a respondent, regarding alleged actions that occurred while he was associated with Kalos Capital, Inc. The customer alleged breach of contract, breach of fiduciary duty, negligence, and unsuitable recommendations. The customer further alleged damages in the amount of $175,000.00. On June 30, 2021, the arbitration was settled in the amount of $25,000.00.
- On March 23, 2021, a customer-initiated arbitration was filed naming Mr. Shaw a respondent, regarding alleged actions that occurred while he was associated with Pruco Securities, LLC. The customer alleged breach of fiduciary duty and violations of North Carolina securities statutes. The customer further alleged damages in the amount of $100,000.00. On June 15, 2021, the matter was settled in the amount of $13,125.00.
- On December 10, 2021, a customer-initiated arbitration was filed naming Mr. Shaw a respondent, regarding alleged actions that occurred while he was associated with Pruco Securities, LLC. The customer alleged unsuitable recommendations. The customer further alleged damages in the amount of $500,000.00. On January 18, 2021, the matter was settled in the amount of $25,000.00.
If you or someone you know has or had a brokerage account with Christopher John Shaw (a/k/a Chris Shaw) and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
