FINRA Suspends Former Merrill Advisor Who Operated Numerous Outside Businesses

Posted on November 30th, 2022 at 4:10 PM
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. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

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