Laidlaw Broker Chris Harrington Fined For Unsuitable Trading
On July 7, 2023, an AWC (Acceptance, Waiver, and Consent) was issued against Laidlaw broker Christopher Harrington, resulting in a deferred fine of $11,500 and a suspension from being a broker for nine months. Harrington consented to these sanctions without admitting or denying the findings, which revealed that he engaged in misconduct that harmed a customer by causing unnecessary fees and costs without a reasonable basis for suitability.
The customer, who was 48 years old and unable to work due to a disabling accident, relied on his investment assets for his future. Harrington recommended transactions that led the customer to pay commissions and fees that could have been avoided. For instance, he recommended purchasing approximately $1.4 million in market-linked investments (MLIs) and later moved them to another account, resulting in additional fees. Harrington also recommended selling $550,000 of MLIs, incurring $7,550 in total commissions.
Furthermore, Harrington advised selling over $1.1 million and purchasing over $1 million in different exchange-traded funds (ETFs), generating approximately $25,000 in total commissions. These transactions appeared to serve no purpose other than increasing Harrington’s fees.
The findings also stated that Harrington engaged in short-term trading, including securities typically intended for long-term holding, without a reasonable basis for suitability. For instance, he recommended purchasing Unit Investment Trusts (UITs) for approximately $1 million and sold them shortly afterward. Additionally, he engaged in frequent, unsuitable transactions in master limited partnerships (MLPs), resulting in unwarranted fees.
As a result of these findings, Harrington’s suspension will be in effect from July 17, 2023, until April 16, 2024, as per FINRA Case #2019061789201.
If you lost money because of Harrington’s investment advice, please contact Banks Law Office.