James Paige is the Subject of Unsuitable Investment Recommendations
James Paige (CRD #: 1726609), a broker registered with Wells Fargo Clearing Services. This is according to his BrokerCheck record, accessed on March 27, 2024. Keep reading if you have questions regarding his alleged conduct.
Investor Disputes
On February 6, 2024, investors alleged that James Paige made recommendations that were too risky for their investment knowledge and needs.
On May 1, 2023, an investor alleged that James Paige failed to diversify her portfolio and made unsuitable investment recommendations.
On December 20, 2022, an investor alleged that James Paige engaged in unauthorized activity.
What is a Suitable Investment?
FINRA defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age.
FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability.
- Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards.
- Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client’s personal profile. The profile includes information on the investor’s financial goals, investing experience, and risk tolerance.
- Quantitative Suitability: Brokers with control over a customer’s account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
FINRA Rule 3260
FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.
Background Information
James Paige has passed the following exams:
- Series 66 Uniform Combined State Law Examination
- Series 63 Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 Futures Managed Funds Examination
- Series 7 General Securities Representative Examination
He is a registered broker in 29 states. He is a registered investment adviser in Florida and Texas.
James Paige has registered with four firms:
- Wells Fargo Clearing Services (CRD #: 19616)
- Morgan Stanley & Co. (CRD #: 8209)
- Morgan Stanley (CRD #: 7556)
- Blinder Robinson & Co. (CRD #: 5096)
Kurta Law Can Help
If you have worked with James Paige and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or 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.