South Florida Broker Fined, Suspended for FINRA Violations
Christian Eduardo De Berardinis (CRD #4312327) is a registered investment adviser (RIA) and previously registered securities broker. Mr. De Berardinis is a resident of Palm Beach County. From July of 2015 to July of 2023, he was a representative of Morgan Stanley. Mr. De Berardinis voluntarily resigned from the firm in 2023 after allegations of participating in the sale of securities not offered by the broker-dealer. After completing an investigation into the matter, the Financial Industry Regulatory Authority (FINRA) has now fined and suspended this broker. Here, our Miami securities fraud attorney discusses the case in more detail.
Broker Sanctions: Christian Eduardo De Berardinis Formerly of Morgan Stanley
Christian Eduardo De Berardinis served as a representative for Morgan Stanley for eight years (2015 to 2023). According to the Letter of Acceptance, Waiver, and Consent from FINRA, Mr. De Berardinis participated in private securities offerings while a representative for Morgan Stanley from February of 2020 through August of 2021. During this time, the broker solicited nearly $2.5 million in investment from four of the firm’s customers. The firm was not notified of the private securities transaction—which is a violation of FINRA regulations.
After Morgan Stanley became aware of the matter, Christian Eduardo De Berardinis was permitted to voluntarily resign from the brokerage firm. FINRA has now completed its investigation into the alleged violations. Without admitting or denying any wrongdoing in this case, Mr. De Berardinis has consented to FINRA’s proposed penalties, including a 24-month suspension from the securities industry, a $15,000 fine, and financial disgorgement totaling $22,500. The suspension will last until October of 2026.
A Violation of FINRA Rule 3280
Former Morgan Stanley broker Christian Eduardo De Berardinis was cited for a violation of FINRA Rule 3280. It is a rule that regulates the private transactions of associated persons of member firms. The purpose is to maintain transparency and prevent conflicts of interest. Here are some key points that investors should understand about FINRA rule 3280:
- The Definition of a Private Securities Transaction: Under FINRA Rule 3280, a private securities transaction is one that is outside the regular course or scope of an associated person’s employment with a member firm as a private securities transaction. It includes selling/offering securities not offered by the member firms.
- Prior Notification and Approval: RIAs, brokers, and other associated persons must provide written notice to their member firm before participating in any private securities transaction. The notice should describe in detail the proposed transaction, their role in it, and whether they have received or may receive selling compensation.
- Member Firm Responsibilities: If the member firm approves the associated person’s participation in the private securities transaction, the firm must record the transaction on its books and supervise the associated person’s involvement in the transaction.
Consult With a Miami, FL Securities Fraud Lawyer Today
At Carlson & Associates, P.A., we are proud to put investors first. If you or your loved one suffered losses due to a broker’s FINRA violations, our team is more than ready to help. Contact us today to arrange your completely private, no obligation initial case review. With a law office in Miami, our firm fights for investor rights in Florida and beyond.
Source:
brokercheck.finra.org/individual/summary/4312327