Christopher John McCaffrey of Napa, California, a stockbroker registered with Morgan Stanley, was the subject of a customer initiated investment related Financial Industry Regulatory Authority (FINRA) securities arbitration claim that was settled for $4,100,000.00 in damages based upon allegations that McCaffrey made unsuitable recommendations of options when McCaffrey was associated with Morgan Stanley. FINRA Arbitration No. 22-00122 (January 23, 2023).
According to Public Disclosure, notwithstanding that Morgan Stanley paid $4.1 million to settle the claim:
“Mr. McCaffrey and Morgan Stanley deny Claimant’s allegations in the claim, and contend that all covered call option positions recommended to Claimant were suitable. Mr. McCaffrey and Morgan Stanley contend that the market conditions associated with the pandemic, including the volatility and the rapid appreciation of the underlying stock’ position from 2020-2021 adversely affected the performance of Claimant’s options. They further contend that Claimant was appropriately advised of the risks associated with the options strategy and chose to continue the strategy despite its losses. Morgan Stanley settled the claim to avoid the costs and uncertainty of litigation. Mr. McCaffrey was not asked to contribute to the settlement.”
This is not the first time that McCaffrey has been referenced in a customer initiated investment related dispute concerning McCaffrey’s conduct in the securities industry. FINRA Public Disclosure also shows that McCaffrey is also referenced in a customer initiated investment related complaint filed on April 23, 2004, in which the customer requested $18,233.60 in damages based upon allegations that McCaffrey engaged in unauthorized trading in stocks when McCaffrey was associated with A.G. Edwards Sons Inc. The securities broker dealer denied this complaint.
McCaffrey has been associated with Morgan Stanley as a stockbroker and as an investment advisor representative since June 1, 2009.
