8

Navigating the Choppy Waters of Investment Loss Recovery: My Take on the Chris Neston Case

As an investor, trust in your financial advisor is paramount. Unfortunately, this trust can sometimes be misplaced, as exemplified by the unsettling case of Mr. Christopher William Neston, a stockbroker from North Oaks, MN, who faces serious allegations of financial wrongdoing.

Currently working with Ausdal Financial Partners, I learned that Neston, also known as Chris Neston, has a history with other notable firms, including NEXT Financial Group andAmerican General Securities Inc. If you’re curious about his past roles, you can easily access his detailed professional background via his FINRA CRD number 2741497.

Allegations of Overly Risky Investments

Two of Neston’s former clients, one from NEXT Financial Group and another from Ausdal Financial Partners, have brought claims against him for steering their portfolios predominantly into what are known as illiquid alternative investments, or private placements. This choice favored sectors like equipment leasing, oil and gas, and real estate securities, and resulted in significant commissions for Neston.

One client contended that Neston had been deceitful about how these investments were performing. The claim ended with the client being awarded a settlement of $245,000, out of which Neston personally paid $132,000. The second claimant received a settlement of $75,000, with Neston covering $27,500 of that amount.

The Bigger Picture

FINRA doesn’t play around when it comes to rules that protect investors. Specifically, underFINRA Rule 2111, it’s clear that brokers like Neston, not to mention the firms they represent, need to make sure any investment advice they give matches up well with their clients’ financial circumstances. This means they have to be confident in their choices and not just chasing the biggest paycheck.

Nevertheless, the accusations against Neston suggest he might have overlooked these obligations, opting for alternative investments that may have lined his pockets but potentially left his clients’ financial futures at risk due to their hard-to-sell nature.

What’s At Stake for Neston?

Although FINRA hasn’t dished out any punishment to Neston as of my knowledge cutoff, such accusations could lead to harsh repercussions, impacting his wallet and his reputation as a stockbroker if found to be true.

The ripple effects of this situation could intensify distrust in the financial advisory world, creating an urgent call for tighter regulation. Safeguarding the interests of investors from questionable conduct is critical to preserving the market’s overall health and credibility.

The narrative of Chris Neston is a stark warning for me and my investor peers. It underscores the vital necessity of vetting financial advisors and highlights the benefit of staying on top of who you entrust your financial wellbeing to, advocating for honesty and clarity in our dealings with financial professionals.

Remember the words of Warren Buffet, “It takes 20 years to build a reputation and five minutes to ruin it.” The story of financial advisors gone astray, including cases like Neston’s, are a jarring reminder of that wisdom. And, to put a figure on it, studies show that bad financial advisors can cost investors between 1% to 3% in returns each year, a significant factor that can erode your nest egg over time.

Don’t hesitate to do your due diligence and always check the background of financial advisors, including a careful review of their FINRA records. Your financial future is not just a matter of choice but a consequence of informed decisions.

Scroll to Top