Christopher Eriksson Suspended by FINRA
Christopher Eriksson (CRD #: 2487298), a broker formerly registered with Merrill Lynch, Pierce, Fenner & Smith, allegedly engaged in unapproved outside business activities, according to his BrokerCheck record, accessed on January 11, 2023. If you have questions about his alleged conduct as a broker, read on.
On November 9, 2022, Christopher Eriksson consented to the entry of sanctions that he allegedly borrowed money from a client without providing notice to or seeking approval from his firm, Merrill Lynch, Pierce, Fenner & Smith.
Alleged Loan from Client
According to a Letter of Acceptance, Waiver & Consent (AWC), Christopher Erikkson allegedly borrowed $350,000 from a client in April 2018. He allegedly paid off the loan in full by the date of the signing of the AWC.
Merrill Lynch’s Written Supervisory Procedures (WSPs) at the time allegedly prohibited brokers from borrowing money from clients unless the client was a family member and the firm approved the loan.
Alleged Undisclosed Outside Business Activities
The AWC also alleges that Christopher Eriksson engaged in three undisclosed outside business activities:
- USAR LLC, formed by Christopher Eriksson in February 2018. In October 2018, USAR allegedly purchased an undeveloped property in Texas from a Merrill Lynch client for the purpose of developing it into an auto recycling business.
- Eriksson Family Properties, LLC (EFP), founded by Christopher Eriksson in September 2003. EFP allegedly owned two commercial properties in St. Paul, Minnesota, and received rental payments for each property at different points in time. Christopher Eriksson allegedly disclosed EFP to his firm in April 2020 and was granted approval.
- Held ownership interest in three automobile salvage companies and two related real estate holding companies in September 2015. He allegedly never disclosed these ownership interests to Merrill Lynch at any time.
The AWC further alleges that Christopher Eriksson failed to disclose all of his outside business activities on firm questionnaires submitted from 2017-2019.
The AWC concludes that this alleged misconduct violated NASD Rules 3030 and 2110 as well as FINRA Rules 3270 and 2010.
FINRA Rule 3270
FINRA Rule 3270 requires brokers to seek approval from their firm before engaging in outside business activities.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Christopher Eriksson consented to the following sanctions:
- $10,000 fine
- 6-month suspension
His suspension ran from November 21, 2022, to May 20, 2023.
You can read the full AWC here.
Other business activities
Christopher Eriksson’s detailed BrokerCheck report lists the following outside business activities:
- Compensated by Eriksson Vending, a vending machine business.
- Owner of C & R Partners, LLC (doing business as The Wine Shop), a wine retailer.
- Owner of R.U. Hungri LLC (doing business as Spasso), an Italian restaurant.
- Sole owner of Eriksson Family Properties.
Termination from Merrill Lynch, Pierce, Fenner & Smith
On October 20, 2020, Christopher Eriksson was fired from Merrill Lynch, Pierce, Fenner & Smith following allegations regarding his involvement in certain unapproved outside business activities, including a financial arrangement with a client.
In a dispute filed on September 22, 2020, an investor alleged that they loaned Christopher Eriksson money to purchase real estate. The client additionally alleged that Christopher Eriksson made unsuitable investment recommendations and engaged in excessive trading.
The investor seeks $20,000,000 in damages in this pending dispute.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to take investors’ profiles into account when recommending investments. These profiles describe an investor’s tax status, risk tolerance, and other characteristics.
Investors who rely on brokers for recommendations may be able to recoup their losses by seeking out FINRA arbitration.
On December 11, 2019, Christopher Eriksson was subject to a $38,678.77 civil lien.
Christopher Eriksson 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 7 – General Securities Representative Examination
He previously worked for the following firms:
- Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
- Wachovia Securities (CRD#:19616)
- Prudential Securities (CRD#:7471)
Kurta Law Can Help
If you worked with Christopher Eriksson and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.