FINRA Suspends Former Merrill Advisor Who Operated Numerous Outside Businesses
The Financial Industry Regulatory Authority (FINRA) has issued a six-month suspension and a $10,000 fine to a former Merrill Lynch advisor after his group of outside businesses violated firm and regulatory policy.
The Minnesota-based advisor, Christopher Eriksson, allegedly ran three outside businesses without obtaining required approval from Merrill Lynch. According to FINRA, the outside businesses included purchasing a parcel of land in Texas to develop an auto recycling business, two commercial properties that generated rental income and three automobile salvage companies.
Eriksson additionally violated industry rules by borrowing $350,000 from a Merrill Lynch client without first notifying the firm, even though the loan was paid back in full. However, Eriksson also faces a pending client arbitration filed in 2020 seeking $20 million in damages related to an outside business activity in which the client provided the advisor with a personal loan to purchase real estate, according to BrokerCheck. The client further alleged unsuitable recommendations and excessive trading in options, according to BrokerCheck. The businesses at issue were a few of several approved activities listed on Eriksson’s BrokerCheck profile. Eriksson also lists a vending machine company that he initiated in 1994 as well as an Italian restaurant in Minnetonka, known as Spasso.
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