Christopher Philip Arnella, of New York, New York, a stockbroker registered with Morgan Stanley, has been fined $5,000.00 and suspended for one month from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Arnella made misleading statements about the performance of a company’s stock. Letter of Acceptance, Waiver, and Consent No. 2020069039302 (September 5, 2024).
FINRA Rule 2210 requires that any statements made by a stockbroker in communications must be truthful, balanced, and not misleading. The regulator prohibits making exaggerated or false claims, predicting future stock performance, or making guarantees about the future value of investments. These rules are meant to protect customers from being misled by unrealistic promises or projections.
According to the AWC, between June 2017 and June 2020, Arnella made several predictions, including publicly posting his belief that the company’s stock price would rise to a specific value by the end of 2018. He also communicated with two customers, asserting there was a one hundred percent chance that a legal ruling against the company would be reversed. The stockbroker reportedly made it look like future outcomes were guaranteed, which is against FINRA’s guidelines because of the risk that investors might make decisions based on unrealistic expectations. By making these claims, he violated FINRA Rule 2210.
FINRA Public Disclosure also shows that on January 20, 2023, a customer initiated investment related FINRA securities arbitration claim involving Arnella’s conduct was settled for $2,500,000.00 in damages based upon alleged unsuitable recommendations during the time that Arnella was associated with Morgan Stanley Smith Barney. FINRA Arbitration No. 20-04105.
Arnella has been associated with Morgan Stanley in New York, New York, since June 1, 2009, as a stockbroker, and since June 27, 2013, as an investment advisor representative.
