Securities Lawyers Blog
Financial advisor James Paige (Paige), currently employed by brokerage firm Wells Fargo Clearing Services, LLC (Wells Fargo) has been subject to at least five customer complaints and one tax lien or judgement during the course of his career. According to the most recent complaints, Paige has been accused by customers of engaging in unsuitably risky investments among other allegations against the financial advisor.
In February 2024 a customer complained that Paige violated the securities laws by alleging that Paige in or around the year 2021 made financial recommendations that were unsuitable and too risky for Claimants’ investment knowledge and needs. The claim is currently pending.
In May 2023 a customer complained that Paige violated the securities laws by alleging that Paige, sometime after 2020, failed to diversity her portfolio and made unsuitable investment recommendations without disclosing the risks involved with the investments. The claim settled for $95,000.
Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a “best interest” standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.