Paul Mauro Allegedly Misrepresented Unsuitable Annuities
Paul Mauro (CRD #: 824304), a broker registered with SagePoint Financial, allegedly made misrepresentations about annuity products, according to his BrokerCheck record, accessed on May 31, 2023. If you want to know more about his alleged conduct as a broker, keep reading.
Investor Disputes
On March 16, 2023, an investor alleged that Paul Mauro made misrepresentations about unsuitable variable and fixed index annuities purchased by the client in 2022. This dispute is currently pending.
In a dispute filed on June 26, 2017, multiple clients alleged that Paul Mauro gave “incorrect” recommendations relating to Medicaid planning. The clients sought $86,000 in damages but the dispute was denied by the firm.
However, investors should be aware that firms can deny disputes without an outside review. Investors may still be able to recover their funds by pursuing FINRA arbitration after a denial.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their risk tolerance, tax status, and age.
Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.
FINRA Rule 2020
FINRA Rule 2020 bans the use of deception, manipulation, and other fraudulent means of influencing the purchase and sale of securities. Misrepresenting an investment’s requirements, limitations, or other relevant information violates this rule.
What are Variable Annuities?
Variable annuities are complex investments. These policies can decline in value depending on the performance of the underlying security. Surrender charges, tax penalties, and other fees can make these policies unsuitable.
Massachusetts Regulatory Action
On February 26, 2018, the Massachusetts Securities Division entered a consent order with Paul Mauro alleging that it had received four complaints from clients alleging violations of the Massachusetts Uniform Securities Act.
Paul Mauro consented to the following sanctions for the period of 2018-2023:
- Reviews of all Massachusetts client new account forms
- Quarterly reviews of transactions in a sample of 10% of his Massachusetts client accounts
- Suitability reviews of all sales of securities to Massachusetts investors
- Review of all of his Massachusetts client accounts during annual firm audits
What are Blue Sky Laws?
Blue sky laws like the Massachusetts Uniform Securities Act are state-level regulations that offer investors an additional layer of protection against securities fraud. They may also describe which types of investments must register with the state securities board.
Background Information
Paul Mauro has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- Series 6TO – Investment Company Products/Variable Contracts Representative Examination
- SIE – Securities Industry Essentials Examination
- Series 1 – Registered Representative Examination
Paul Mauro is a registered broker in 29 states and a registered investment adviser in 20 states.
He has also worked for the following firms:
- SII Investments (CRD#:2225)
- Legacy Advisory Services (CRD#:111027)
- Legacy Financial Services (CRD#:38697)
- InterSecurities (CRD#:16164)
- PML Securities Company (CRD#:4082)
- R. G. Dickinson & Company (CRD#:689)
- J. T. Moran & Company (CRD#:15655)
- Buttonwood Securities Corporation of Massachusetts (CRD#:7303)
- John Hancock Mutual Life Insurance Company (CRD#:5181)
- John Hancock Distributors (CRD#:468)
Kurta Law Can Help
If you worked with Paul Mauro 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.