Christian Eduardo De Berardinis, of New York, New York, a stockbroker registered with Morgan Stanley, has been fined $15,000.00 and suspended for 24 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because De Berardinis participated in private securities transactions during the time that he was associated with Morgan Stanley. Letter of Acceptance, Waiver, and Consent No. 2023079207702 (September 19, 2024).
FINRA Rule 3280 requires stockbrokers to notify the securities broker dealer with whom they are associated with before participating in any securities transactions that are outside the scope of their regular duties with the firm. If the stockbroker expects to receive compensation from these transactions, they also need written approval from the firm. This rule is in place to help ensure that the securities broker dealer can supervise all activities and prevent conflicts of interest.
According to the AWC, De Berardinis took part in private securities transactions or “selling away” between February 2020 and August 2021 without notifying Morgan Stanley or seeking their approval. He helped four customers invest $2,450,000.00 in a dairy company, facilitated by introducing them to the company’s CEO and assisting with paperwork. De Berardinis received $22,500.00 in referral fees for his efforts but failed to disclose his involvement to the firm, as required by their policies. He violated Rules 3280 and 2010.
FINRA Public Disclosure also shows that De Berardinis was the subject of a customer initiated investment related FINRA securities arbitration claim that was settled for $1,350,000.00 resulting from alleged solicitation of private investments between 2020 and 2023. FINRA Arbitration No. 23-00507 (January 17, 2024).
Christian De Berardinis was associated with Morgan Stanley in New York, New York, from July 20, 2015, to July 20, 2023.
