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Alex Paredes-Malaga Allegedly Misrepresented Unsuitable Investments

Alex Paredes-Malaga (CRD #: 7191576), a broker registered with Merrill Lynch, Pierce, Fenner & Smith, is the subject of an investor dispute. This disclosure appears on his BrokerCheck record, accessed on August 19, 2024. Details concerning this disclosure are provided below. 

Investor Allegations 

On June 26, 2024, an investor alleged that Alex Paredes-Malaga misrepresented unsuitable recommendations and failed to act in the client’s best interest from September 2021 through June 2023. The investor is seeking $750,000. 

What is an Unsuitable Investment? 

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs.

Rule 2111 also requires brokers to consider the following investor characteristics: 

  • Age
  • Risk tolerance
  • Time horizon (i.e., how long the investor plans to hold the investment)
  • Investing experience
  • Tax status
  • Financial goals

Investments that do not fit the criteria established by the investor profile may be unsuitable. Investors who rely on brokers for recommendations may recover their losses by pursuing FINRA arbitration.

Background Information 

Alex Paredes-Malaga has passed the following exams:

  • Series 66 Uniform Combined State Law Examination
  • Series 7TO General Securities Representative Examination 
  • SIE – Securities Industry Essentials Examination 

He is a registered broker in 15 states and is a registered investment adviser in California and Texas. 

Kurta Law Can Help 

If you worked with Alex Paredes-Malaga and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.

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