Christopher F. Harrington Jr. (CRD #5250991, New York, New York)

July 7, 2023 – An AWC was issued in which Harrington was assessed a deferred fine of $11,500 and suspended from association with any FINRA member in all capacities for nine months. Without admitting or denying the findings, Harrington consented to the sanctions and to the entry of findings that he recommended transactions in a customer’s account that inflated his own compensation and caused the customer to incur unnecessary fees and costs, without a reasonable basis to believe the transactions were suitable. The findings stated that the customer was 48 years old when he started investing with Harrington and depended on the investment assets for the rest of his life because he was no longer able to work after a disabling accident. Harrington recommended that the customer purchase and sell securities in ways that caused him to pay commissions or incur fees, which Harrington received, that could easily have been avoided. For example, Harrington had recommended the purchase of approximately $1.4 million in market-linked investments (MLIs) for which Harrington received a fee. Shortly thereafter, Harrington moved these MLIs to another account, resulting in another fee that the customer paid, and Harrington received. In addition, Harrington recommended selling approximately $550,000 of MLIs and using the proceeds of the sales to purchase other securities in a way that caused the customer to incur approximately $7,550 in total commissions. Still further, Harrington recommended to the customer the liquidation of over $1.1 million and the purchase of over $1 million of different exchange-traded funds (ETFs). These transactions generated approximately $25,000 in total commissions for Harrington. In each case, Harrington could have recommended the transactions in a different manner that would have avoided unnecessary and unwarranted fees and commissions. There was no purpose for the timing of these transactions or their manner of execution other than to increase Harrington’s fees. The findings also stated that Harrington engaged in short-term trading, including in securities typically intended to be held long-term, to his benefit and his customer’s detriment, and without a reasonable basis to believe that the recommended transactions were suitable for the customer. For example, Harrington recommended purchases of Unit Investment Trusts (UITs) for approximately $1 million in the customer’s account and sold each one a short time later. Harrington also recommended the purchase of MLIs in the customer’s account for $9,858,225, and a short time later a majority of these were sold for $6,582,043. Furthermore, Harrington engaged in frequent, unsuitable transactions in master limited partnerships (MLPs), generating additional and unwarranted fees. Harrington recommended that the customer purchase MLPs so that the customer could receive benefits from holding them long-term. Contrary to this recommendation, Harrington sold the MLPs shortly after purchase. The suspension is in effect from July 17, 2023, April 16, 2024. (FINRA Case #2019061789201)