Christopher Reynolds (CRD #5976029, Monaca, Pennsylvania)

August 16, 2024 – An AWC was issued in which Reynolds was barred from association with any FINRA member in all capacities. Without admitting or denying the findings, Reynolds consented to the sanction and to the entry of findings that he caused his member firm to maintain inaccurate books and records by forging customer signatures. The findings stated that without having the customers’ permission, Reynolds electronically or hand signed customers’ names on hard copy account documents. These account documents included transfer of assets forms and 1035 exchange/rollover/transfer forms and were required books and records of the firm. In addition, Reynolds signed two customers’ names on withdrawal forms without the customers’ permission or authorization for the withdrawal or surrender. The findings also stated that Reynolds willfully violated Reg BI by recommending that customers make annuity withdrawals or surrenders and reinvest the proceeds in a registered index-linked annuity without having a reasonable basis to believe those transactions were in his customers’ best interests. As a result, Reynolds’ customers incurred penalties such as surrender charges, the imposition of new, lengthier surrender periods, and tax consequences. The tax consequences could have been avoided if Reynolds recommended 1035 exchanges, as opposed to recommending full withdrawals or surrenders and then moving the money into the new product. After discovering Reynolds’ misconduct, his firm either reversed or stopped the customers’ Disciplinary and Other FINRA Actions 15 October 2024 transactions or, when that was not possible, paid the customers restitution. Reynolds also did not conduct a comparative analysis of the advantages and disadvantages of the existing annuities and the new registered index-linked annuity or make a determination that the customers would benefit from the new products. Reynolds thus failed to consider whether the purchases were in the customers’ best interest in light of the disadvantages of giving up the prior annuity contracts. Overall, Reynolds’ recommendations caused the customers to incur over $32,000 in surrender fees, in addition to adverse tax consequences. The findings also included that Reynolds caused his firm to fail to retain emails and text messages as part of its books and records by using his personal email account and cell phone to exchange securitiesrelated communications with firm customers. Reynolds did not forward his emails or text messages to the firm for review or retention. (FINRA Case #2022076491301)