Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Christopher Harpin (Harpin), currently associated with Cambridge Investment Research, INC., has at least 3 disclosable events. These events include one customer complaint, 2 regulatory events, alleging that Harpin recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on May 01, 2025.
On April 2, 2025, without admitting or denying the findings, Christopher entered into an Acceptance, Waiver and Consent (‘AWC’) with FINRA wherein Christopher consented to the entry of findings that from August 2018 through April 2021, Christopher caused at least 638 solicited purchases of high-yield bonds in 53 of his customers’ accounts to be incorrectly marked as unsolicited when, in fact, Christopher had solicited the transactions. Christopher’s conduct continued despite being warned by the firm that solicited transactions involving high-yield bonds were prohibited. By causing these transactions to be mismarked, Christopher caused his firm to maintain inaccurate books and records. Respondent agreed to a two-month suspension from associating with any FINRA member in all capacities and to the payment of a fine in the amount of $5,000.
FINRA BrokerCheck shows a final customer complaint on April 02, 2025.
Without admitting or denying the findings, Harpin consented to the sanctions and to the entry of findings that he caused solicited purchases of high-yield bonds in his customers’ accounts to be incorrectly marked as unsolicited, and as a result, caused his member firm to maintain inaccurate books and records. The findings stated that Harpin’s conduct continued despite being warned by the firm that solicited transactions involving high-yield bonds were prohibited.
FINRA BrokerCheck shows a settled customer complaint on June 24, 2020.
Based on allegations of fraud, deceit, untrue statements, omission of material facts, and schemes to defraud, the client of four brokerage accounts established in January 2017 and June 2020 demands a rescission of all securities purchased plus statutory interest of 10% per annum from the date(s) of purchase.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a ‘best interest’ standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. This standard applies when a registered representative is providing investment advice through making recommendations customers and covers securities transaction, investment strategies, and recommendations concerning advice on opening of an account or accounts.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. The Reg BI rule applies a fiduciary principles and requires an associated person to act in the retail investor’s “best interests” while barring the broker from placing their own financial interests and compensation incentives ahead of the investor’s best interest. Reg BI comes with different key obligations that associated persons must meet in dispensing advice. The care obligation requires registered representatives to carefully evaluate investment options, review the risks and rewards of the investment or service, compare similar products, and ensure that the recommended investment is appropriate for the customer and in the retail investor’s best interest.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. Finally, the financial advisor must use their knowledge of both their reasonable diligence into investment options as well as their knowledge of the investor’s client specific needs to consider reasonably available investment options. Those investment options must allow the broker to determine that there is a reasonable basis that the recommendation is in the retail investor’s best interest. Brokerage firms and advisors must also understand the features and limitations of various account types as part of meeting Reg BI’s care obligations. Firms typically offer a variety of account options and services with different trading costs, services, such as account and activity monitoring. An advisor’s recommendation as to what type of securities account to open can alter the customers’ overall costs and investment returns. The advisor must determine that the client can benefit from the type of account being recommended to be opened and in the investor’s best interest taking into account the costs, benefits, and needs of the client.
Harpin entered the securities industry in 1997. Harpin has been registered as a Broker with Cambridge Investment Research, INC. since 2021.
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.