Christopher J. Shaw, also known as Chris Shaw, of Belmont, North Carolina, a former stockbroker with Newbridge Securities Corporation, was sanctioned by Financial Industry Regulatory Authority (FINRA) for making unsuitable investment recommendations to customers. The disciplinary action was initiated on October 23, 2024, and Shaw consented to the findings without admitting or denying the allegations. Letter of Acceptance, Waiver, and Consent (AWC) No. 2018060897304.
Between May 2016 and September 2017, Shaw recommended and sold GPB Capital limited partnership interests to five senior customers who did not meet the qualifications for accredited investors. These recommendations were unsuitable based on the customers’ investment profiles, including their age, income, net worth, and risk tolerance. Shaw’s actions caused an excessive concentration of over 30% of each customer’s liquid net worth in alternative investments, which were inconsitent with their financial needs.
As a result, Shaw was suspended for three months from associating with any FINRA member in all capacities, effective from November 4, 2024, to February 3, 2025. He was also ordered to pay a $5,000 fine and restitution of $16,357.60, plus interest, to one affected customer.
According to FINRA Public Disclosure, Shaw has a history of customer disputes that were settled prior to this regulatory action. On March 25, 2021, a customer accused Shaw of breaching contract, fiduciary duty, and acting negligently by making unsuitable recommendations involving alternative investments. The customer sought $175,000 in damages, and the case was settled for $25,000. Another dispute filed on March 10, 2021, included similar allegations, with the customer requesting $100,000. That matter was settled on June 2, 2021, for $14,125. Additionally, on August 24, 2020, a customer alleged Shaw solicited unsuitable investments despite their lack of accredited investor status. The customer sought $90,000, and the dispute was settled for $13,183.
Shaw most recently worked with Newbridge Securities Corporation from September 24, 2020, to May 30, 2023. Before this, he was associated with Pruco Securities LLC from May 15, 2019, to September 15, 2020. Pruco Securities discharged Shaw on September 2, 2020, for discretionary trading in customer accounts and inaccurately marking solicited trades as unsolicited.
