Christian de Berardinis Allegedly Engaged in Unapproved Offering
Christian de Berardinis (CRD# 4312327), formerly a broker registered with Morgan Stanley, participated in an unapproved private securities offering, according to a recent regulatory action. MDF Law is investigating the West Palm Beach, Florida-based Aperture Advisors representative for similar conduct. If you suffered losses investing with him, contact our law firm for a free and confidential consultation.
More information about the allegations against Mr. de Berardinis follows below. This post is based on an October 8, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.
Why Did FINRA Sanction Christian de Berardinis?
On September 19, 2024, FINRA disclosed a disciplinary action against Mr. de Berardinis. As a Letter of Acceptance, Waiver, and Consent (No. 2023079207702) lays out, the action alleges that he violated FINRA Rule 3280. This rule establishes that before brokers participate in private securities transactions, they must first provide written notice to their member firm. In this notice, they must “detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.”
For transactions in which they have received or may receive selling compensation, the firm will provide its approval or disapproval of their participation. Representatives who violate this rule also violate FINRA Rule 2010, under which they must “observe high standards of commercial honor and just and equitable principles of trade” while conducting their business.
Sanction Concerns Dairy Company Private Placement
As the AWC Letter describes, FINRA alleges that Mr. de Berardinis facilitated four Morgan Stanley customers’ investments in a private placement offering by a dairy company. He allegedly introduced the customers to the company’s CEO and made recommendations to invest in the company. Furthermore, FINRA alleges, he gave customers information about the offering and in certain cases assisted with paperwork and requested funds transfers. “In total,” FINRA alleges, “the four firm customers invested $2.45 million in [the company], and De Berardinis received $22,500 from [the company] in referral fees.”
However, the Letter states, he failed to provide Morgan Stanley with prior written notice about the transactions or receive its approval. He also allegedly “falsely responded to questions about whether he had participated in private securities transactions” on multiple compliance questionnaires. As such, FINRA found that he violated Rules 2010 and 3280. The regulator suspended him from associating with any member firm in all capacities for a period of 24 months. It also ordered him to pay a fine of $15,000 and disgorgement of $22,500, plus interest.
Firm Settled Past Dispute for $1.35 Million
In February 2023, an investor filed a dispute involving Mr. de Berardinis. The dispute alleged that he solicited outside investment opportunities not authorized by the firm. His former member firm settled the dispute for $1,350,000.
FINRA: Aperture Adviser Based in West Palm Beach
Christian de Berardinis launched his career as a broker in 2001, when he registered with Banc of America Securities. Over the following years, he worked with firms like J.P. Morgan Securities and Oppenheimer & Company. He joined Morgan Stanley’s New York City office in 2015, remaining there until his resignation in 2023. While he has been suspended from acting as a broker, he is registered as an investment adviser with Aperture Advisors in West Palm Beach, Florida.
Broker Fraud? MDF Law Has Your Back
Do you have complaints about investments recommended by Christian de Berardinis? You may be able to recover lost funds. Contact MDF Law at 800-767-8040 to receive a free consultation with our seasoned legal team. Our attorneys boast decades of experience recovering more than $100 millions for the victims of broker fraud. We take cases on contingency—we only collect a fee when our clients win—and offer free consultations nationwide. Don’t delay: call MDF Law today.