Christopher Joseph Nelson of Brandon South Dakota a stockbroker formerly registered with Wynston Hill Capital LLC has been fined $5,000.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Nelson falsified the records of Wynston Hill concerning trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2020065627301 (Mar. 24, 2021).
According to the AWC, between February of 2019 and May of 2019, Nelson made hundreds of securities transactions in two Wynston Hill customers’ accounts even though he was not listed as the stockbroker responsible for those customers’ accounts and was not the person who made recommendations. Two other stockbrokers of Wynston Hill interacted with those customers and provided them with advice on securities transactions.
Nelson was knowledgeable about the two stockbrokers at Wynston Hill not having the required registrations in states where the customers were located. By Nelson entering transactions under his name, he hid that those two stockbrokers were engaging in securities business. Nelson was compensated along with the stockbrokers for securities transactions that were recommended for their accounts. FINRA found that Nelson violated Rule 2010 based on falsifying records, and Rules 4511 and 2010 for causing Wynston Hill Capital to have inaccurate records and books.
FINRA Public Disclosure also shows that on August 1, 2019, a customer filed an investment related FINRA securities arbitration claim concerning Nelson’s conduct where the customer sought $314,852.00 in damages based upon accusations that they had been defrauded and that unauthorized trades were executed in their account resulting in losses on options and equities. FINRA Arbitration No. 19-02155. The claim also alleges unsuitable transactions and that Wynston Hill Capital failed to supervise the stockbroker’s activities in January of 2019.
Nelson was registered with Wynston Hill Capital between November 1, 2018 and June 20, 2019.