Chris Shaw: FINRA Suspends Newbridge Advisor over GPB Capital Sales

A recent sanction against Belmont, North Carolina financial advisor Chris Shaw (CRD# 5011382) alleged that he recommended unsuitable investments in GPB Capital. Financial Industry Regulatory Authority and Securities and Exchange Commission records show that the former Newbridge Securities Corporation broker is currently registered as an investment advisor with Newbridge Financial Services.

A Letter of Acceptance, Waiver, and Consent (No. 2018060897304) describes FINRA’s disciplinary action against Mr. Shaw. Filed in October 2024, it alleged that he recommended unsuitable alternative investments to five customers, violating FINRA rules. The investments in question were unregistered limited partnership interests in GPB Capital, sold as part of a Regulation D offering. As the AWC Letter states, offering documents published by the company explained that the interests “were all illiquid securities” intended to be held by “sophisticated” investors able to bear various risks for an indefinite period.

Despite these disclosures, FINRA found, the customers to which he sold these investments were not accredited, and the investments were unsuitable for their profiles. One was a 63 year old retiree with a moderate risk tolerance who invested a total of $254,000 in the securities. In another case, a married couple, both retired and 64 years old, invested a total of $210,000 in the interests. Later, a 68 year old customer with a moderate risk tolerance invested $250,000 in GPB at Mr. Shaw’s recommendation. The fifth investor, a 64-year-old retiree with a moderate risk tolerance, invested $90,000 in GPB. Four of these customers had an investment objective of income; the fifth had an objective of capital appreciation.

FINRA found that GPB Capital interests were unsuitable investments for these customers in light of factors including their age and risk tolerance, as well as the fact that they were not accredited investors. “Additionally,” FINRA’s findings stated, “[Mr.] Shaw’s recommendations were unsuitable because they resulted in a level of concentration of the customers’ liquid net worth in alternative investments that was not suitable for their investment profiles.” The regulator found that he violated FINRA rules, issuing him a three-month suspension and a fine of $5,000. Information about FINRA’s previous disciplinary action against Mr. Shaw can be found here.

According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Chris Shaw holds 16 years of securities industry experience. Based in Belmont, North Carolina, he has been registered as an investment advisor with Newbridge Financial Services since 2021. His past registrations include Newbridge Securities Corporation, Prudential Securities, Kalos Capital, and Blackbird North Carolina. He is licensed in North Carolina and Texas. (Information current as of October 24, 2024.)

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