The law offices of Gana Weinstein LLP are currently investigating claims that Broker Christopher Eriksson (Eriksson) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Eriksson was employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated at the time of the activity. If you have been a victim of Eriksson’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a final customer complaint on November 09, 2022.
Without admitting or denying the findings, Eriksson consented to the sanctions and to the entry of findings that he borrowed money from a customer without notice to, or approval from, his member firm. The findings stated that Eriksson borrowed $350,000 from a customer, at a fixed interest rate, as documented by a promissory note drafted by one of the co-trustees of the customer. Eriksson has paid off in full the principal and interest of the loan. The findings also stated that Eriksson engaged in three undisclosed outside business activities (OBAs). In addition, Eriksson submitted questionnaire responses to the firm which failed to disclose all his OBAs.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $20,000,000.00 on September 22, 2020.
The customer alleges outside business activity when the Financial Advisor received a personal loan from the customer in order to purchase real estate. The customer also alleges unsuitable investment recommendations and excessive trading.
Our firm is highly experienced in pursuing cases for defrauded clients whose advisors accept client loans or sell securities through OBAs. The practice of selling unapproved investments, promoting fraudulent schemes to hide misused funds, and engaging in other deceptive acts is known in the industry as “selling away,” a major infraction of securities laws. The term “selling away” in the industry refers to financial advisors promoting investments in businesses, promissory notes, or securities that their affiliated brokerage firm has not approved. Some of these investments may appear legitimate, but they often lead to Ponzi schemes or advisors engaging in fund misappropriation.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. To ensure proper supervision of brokers, firms must establish procedures for monitoring advisors’ actions and engagements with the public. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Eriksson has been in the securities industry for more than 26 years. Eriksson has been registered as a Broker with Merrill Lynch, Pierce, Fenner & Smith Incorporated since 2005.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.