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Jean Paradis Allegedly Misrepresented Unsuitable Variable Annuity

Oct 28, 2022 General

Jean Paradis (CRD #: 2167253), a broker registered with LPL Financial, allegedly misrepresented a variable annuity, according to his BrokerCheck record, accessed on October 14, 2022. If you have questions about Jean Paradis’s conduct as a broker, keep reading.

Investor Dispute

On July 13, 2022, an investor alleged that Jean Paradis misrepresented an unsuitable variable annuity between October 4 and 21, 2021. This dispute was denied by the firm.

However, investors should know that firms don’t need to allow an outside review before denying a dispute. Investors may still be able to recover their losses through FINRA arbitration following a denial.

FINRA Rule 2020

FINRA Rule 2020 bans the use of manipulative, deceptive, and otherwise unethical methods to influence investors’ decisions. Misrepresenting an investment’s features, risks, or potential returns violates this rule.

FINRA Rule 2111

FINRA Rule 2111 identifies the three prongs of a suitability determination as 1) reasonable-basis suitability; 2) customer-specific suitability; 3) quantitative suitability. 

  1. 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. 
  1. Customer-specific Suitability: Before making a recommendation of the 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.  
  1. 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.  

Background Information

Jean Paradis has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination
  • Series 6 – Investment Company Products/Variable Contracts Representative Examination
  • Series 26 – Investment Company Products/Variable Contracts Principal Examination

Jean Paradis is a registered broker in 9 states and a registered investment adviser in Maine.

He has also worked for the following firms:

  • SII Investments (CRD#:2225)
  • Investacorp (CRD#:7684)
  • John Hancock Distributors (CRD#:468)
  • John Hancock Mutual Life Insurance Company (CRD#:5181)

Kurta Law Can Help

If you worked with Jean Paradis and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and 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.