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Investors Seek $3 Million from Christopher Black in Suitability and Misrepresentation Disputes

May 27, 2022 Unsuitable Investments

Christopher Black (CRD #: 2186558), a broker registered with UBS Financial Services, is embroiled in multiple investor disputes, according to his BrokerCheck record, accessed on May 22, 2022. If you want to know more about Christopher Black’s conduct as a broker, read on.

Alleged Misrepresentation and Unsuitable Investment Recommendations

Three disputes filed in February 2022 and one filed in September 2019 all name Christopher Black in allegations that he gave unsuitable recommendations to invest in and hold an options overlay strategy, as well as misrepresenting that strategy. Investors claim these allegations occurred between 2016 and 2019.

They seek a collective $1,800,000 in damages in these pending disputes.

In a dispute filed on April 30, 2020, an investor alleges Christopher Black made unsuitable recommendations to invest in and hold an options overlay strategy as well as hedge funds, structured notes, and private equity funds. The client also alleges misrepresentation related to these investments.

The investor seeks $1,200,000 in this pending dispute.

FINRA Rules 2111 and 2020

FINRA Rule 2111 requires brokers to recommend investments or investment strategies that match investors’ profiles. These profiles contain investor characteristics such as their age, tax status, and overall financial situation.

The use of manipulation, deception, and other fraudulent means of influencing investors’ decisions are banned by FINRA Rule 2020.

Investors may be able to recover losses caused by unsuitable investment recommendations or misrepresentation of investments by seeking FINRA arbitration.

Arbitration with UBS Financial Services

On October 9, 2019, an arbitration agreement was filed resolving a customer complaint against Christopher Black during his time at UBS Financial Services.

The clients, Robert Ratcliff, Sr. and Ratcliff Investments, alleged that Christopher Black engaged in fraud and misrepresentation; recommended an unsuitable product and committed other unspecified violations of suitability; committed negligence; and breached his contract in violation of federal securities laws, FINRA regulations, Louisiana securities statutes (including Louisiana Revised Statutes 51:712 and 51:714) and any applicable common law.

According to the arbitration agreement, Robert Ratcliff and Ratcliff Investments allege that they suffered losses in their accounts related to a product called the “Yield Enhancement Strategy” (YES), which was recommended to them by Christopher Black.

Louisiana Revised Statutes 51:712 and 51:714

Louisiana Revised Statute 51:712 defines and prohibits various forms of fraud brokers may potentially engage in, including the misrepresentation and omission of information.

Louisiana Revised Statute 51:714 makes brokers who sell securities in violation of Statute 51:712 liable in civil court to the people they defrauded and defines the conditions under which they can be sued.

Sanctions

No sanctions were imposed on Christopher Black as part of this arbitration agreement. UBS Financial Services was required to pay a total of $433,000 in damages and attorneys’ fees to Robert Ratcliff and Ratcliff Investments, as well as interest on these awards.

You can read the full arbitration agreement here.

Background Information

Christopher Black has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 3 - National Commodity Futures Examination
  • Series 7 - General Securities Representative Examination

Christopher Black is a registered broker in 24 states and the District of Columbia. He is also a registered investment adviser in South Carolina and Texas.

In the past, he has also worked for the following firms:

  • Credit Suisse Securities (USA) (CRD#:816)
  • Morgan Stanley & Company (CRD#:8209)
  • Royal Alliance Associates (CRD#:23131)
  • Oppenheimer & Company (CRD#:630)
  • Westcap Government Securities (CRD#:19645)
  • Westcap Securities (CRD#:7301)
  • Guardian Investor Services (CRD#:6635)

Kurta Law Can Help

If you worked with Christopher Black and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.