The Financial Industry Regulatory Authority has filed a securities case against Christopher Ariola, a former broker. According to the regulator, while he was at Bay Mutual Financial, Ariola recommended that three retirees invest a chunk of their retirement funds in energy and gold stocks. He is accused of helping a fourth investor with similar investments using a TD Ameritrade (AMTD) account under his control.<\/p>\n
This caused the investors to lose $140K. All of them had previously worked for the same bus company. These were not sophisticated investors who could handle a lot of risk nor did they have unlimited financial resources to withstand huge losses. Ariola came to work with them after the employees decided to roll over their money from their 401(k) into a Bay Mutual Financial IRA.<\/p>\n
FINRA alleges that Ariola recommended that these investors \u201cinvest heavily\u201d in energy and gold, including high-yield dividend producing stocks that came with a lot of risk. One couple, both retired bus drivers, were about 80% exposed to these risky stocks because of Ariola\u2019s recommendations. Another bus drives was 44% invested in the stocks.<\/p>\n
FINRA said that not only did Ariola expose these investors to \u201csignificant\u201d risks with his recommendations, but also the recommendations were unsuitable for them.<\/p>\n