A former advisor who was convicted in a Ponzi scheme that centred around the acquisition of retiring brokers’ books has now also been banned by the U.S. Securities and Exchange Commission (SEC).
The SEC settled its case against Christopher Parris — former manager of First National Solutions, LLC and co-owner of New York-based brokerage firm First American Securities — who allegedly participated in a Ponzi scheme between 2011 and mid-2018 that involved acquiring the books of retiring advisors, and then selling their clients securities in issuers controlled by Parris and his co-conspirators.
According to the regulator’s order, “Parris told investors that their funds would be invested in the issuers, but instead, among other things, Parris, along with others involved in the scheme, enriched himself by misappropriating investor funds.”
In 2021, Parris pleaded guilty to one count of conspiracy to commit mail fraud. He was subsequently sentenced to 224 months in prison and ordered to pay US$106 million in restitution, along with a couple of his co-defendants.
A final judgment was entered by consent against Parris in 2024, imposing a permanent injunction against him. Now, the SEC has also banned him from issuing and trading penny stocks, and banned him from associating with any broker, dealer, investment advisor and other registered firms.