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FINRA Suspends Newbridge, Ex-Kalos Advisor Chris Shaw
Belmont, North Carolina financial advisor Chris Shaw (CRD# 5011382) was recently sanctioned by securities industry regulators in connection with alleged rule violations. Financial Industry Regulatory Authority records show that Mr. Shaw is a broker with Newbridge Securities Corporation and an investment advisor with Newbridge Financial Services. He was previously registered with Pruco Securities and Kalos Capital.
FINRA announced an enforcement action against Mr. Shaw on November 7, 2022, according to a disclosure on his BrokerCheck report. The regulator sanctioned him in relation to findings he exercised discretionary authority in customer accounts without their written authorization and without his member firm’s acceptance of the accounts as discretionary. “The findings stated that Shaw mistakenly believed he had discretionary authority for the accounts,” FINRA states. “However, the firm did not permit the use of discretion in its brokerage accounts.” He was issued a $5,000 fine and a 15-day suspension set to commence on December 5, 2022.
Mr. Shaw’s BrokerCheck report discloses seven investor complaints. The most recent, filed in 2021, alleged he breached contract, breached his fiduciary duty, engaged in negligence, and recommended “unsuitable, risky, illiquid, complex alternative investments” including non-traded real estate investment trusts (REITs). In 2021 the complaint reached a settlement of $25,000.
A complaint filed in 2020 alleged that as a Kalos Capital representative, Mr. Shaw “engaged in misrepresentation and unsuitable recommendations” regarding investments in real estate securities and a private placement. In 2021 the complaint reached a settlement of $41,237.
A complaint filed in 2019 alleged that Mr. Shaw breached his fiduciary duty and recommended unsuitable alternatives while at Kalos Capital. In 2020 the complaint reached a settlement of $125,000.
A similar complaint, also filed in 2019, alleged that he recommended unsuitable alternative investments between 2012 and 2017, while at Kalos Capital. In 2020 the complaint reached a settlement of $175,000.
Mr. Shaw’s BrokerCheck report also discloses his 2020 firing from Pruco Securities. According to the disclosure, the firm terminated him in relation to allegations he “transacted discretionary trades in client brokerage accounts, and inaccurately marked certain trades as unsolicited when they were solicited.”
According to the Financial Industry Regulatory Authority, Christopher Shaw holds 15 years of securities industry experience. Based in Belmont, North Carolina, he has been a broker with Newbridge Securities Corporation since 2020 and an investment advisor with Newbridge Financial Services since 2021. He is licensed in North Carolina, South Carolina, and Texas. (Information current as of November 16, 2022.)
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