In a dispute filed on 2/6/2024, a customer alleged that Paige made recommendations to them that were “unsuitable and too risky for Claimants’ investment knowledge and needs.” No requested damages are listed.
Another dispute filed on 5/1/2023 alleges that Paige “failed to diversity her portfolio and made unsuitable investment recommendations without disclosing the risks involved with the investments.” The firm settled this claim for $95,000 to avoid the expense and difficulty of litigation, with Paige not contributing to the settlement.
Three prior client disputes were filed on 12/20/2022 with identical allegations of “Customer complained of unauthorized activity. (8/17/2020-12/20/2022).” No additional information is available, and the three claims were closed without action.
Paige also has a tax lien dated 7/12/2023 for $228.42 in his disclosures.
What Does It Mean If A Broker Recommends Something Unsuitable?
Brokers are required to make recommendations that meet their specific investment objectives and criteria. Investors who are seeking to improve their retirement income should not be convinced to accept the same risk exposure as someone who can accept a higher amount of risk.
When a broker or financial advisor recommends a financial product or strategy that is not appropriate for an investor, there is a strong chance that the investor could lose their investments. If it does not meet the needs of the investor, or the customer does not understand the risk associated with a particular investment, it should not be added to their portfolio. If the broker violates these duties to a customer, he or she could be liable for any losses suffered.
Regulation Best Interest (Reg BI), implemented by the U. S. Securities and Exchange Commission (SEC), mandates that brokers and broker-dealers employ reasonable care, diligence, and skill when recommending financial products to retail customers. This regulation also requires these professionals to transparently disclose any potential conflicts of interest or financial incentives, such as commissions or bonuses, that may influence their recommendation of a specific security. The aim of Reg BI is to ensure that financial professionals prioritize their clients’ best interests and provide clear information about factors that might affect their advice.
Did You Invest With James Roy Paige?
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.