Christopher Ariola, of Santa Monica, California, was barred by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) in a default decision made by FINRA’s Office of Hearing Officers for allegedly recommending that elderly retirees invest a large portion of their retirement assets in high-risk gold and energy stocks, causing the customers to lose a combined total of $137,993.13
FINRA alleged that while associated with Bay Mutual Financial, LLC, Christopher Ariola recommended his customers invest heavily in gold and energy stocks. The investment recommendations, including stocks that were purported to produce high-yield dividends, exposed his customers to significant risk. Two of the customers who allegedly took Mr. Ariola’s investment recommendation were a married couple who lost $93,052.21. Another customer lost $44,940.92 as a result of Mr. Ariola’s alleged unsuitable recommendations. Mr. Ariola was barred from association with any FINRA member in any capacity and required to pay $137,993.13 plus interest in restitution to customers.
Stockbrokers have been known to engage in many types of practices that violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm’s own policies and procedures. If broker-dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages that flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct, such as recommending an unsuitable, high-risk investment, can file a claim to recover damages against broker dealers like, Bay Mutual Financial, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Bay Mutual Financial account due to your stockbroker’s unsuitable recommendation? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Bay Mutual Financial stockbrokers for unsuitable recommendations and/or other stockbroker misconduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.