Wells Fargo’s James Paige Involved in More Investor Disputes

James Paige (CRD# 1726609[1]), a broker registered with Wells Fargo Clearing Services, allegedly recommended unsuitable investments and made unauthorized trades, according to recent investor disputes. The disputes in question are disclosed in his BrokerCheck report, a record maintained by the Financial Industry Regulatory Authority (FINRA) and accessed on July 3, 2023. This report notes that he is based in Vero Beach, Florida.

Investors: Paige Made Unsuitable Recommendations

Four investors or parties of investors filed disputes involving Mr. Paige between December 2022 and May 2023. These disputes allege that he failed to diversify a customer’s portfolio, made unsuitable investment recommendations, did not disclose the risks involved with recommended investments, and engaged in “unauthorized activity.” All four disputes remain pending. Three disputes seek unspecified damages, while one seeks unspecified damages between $1 million and $2 million.

FINRA Forbids Unsuitable Recommendations, Unauthorized Trading

The allegations made in the disputes involving Mr. Paige include a few common varieties of broker misconduct.[2] An unsuitable[3] investment is a product or strategy inappropriate for the client’s profile. To determine a recommendation’s suitability, brokers must weigh the customer’s experience and goals, including their risk tolerance, liquidity needs, income and net worth, and other factors.

Failure to diversify, also known as concentration, occurs when a broker allocates a significant portion of the customer’s portfolio in a single security or asset class. As FINRA explains[4], concentration — much like putting too many eggs in one basket — exposes the investor to potentially severe losses if the security or asset class in question suffers a downturn.

The execution of unauthorized transactions, finally, may be considered a contravention of FINRA Rule 2010, under which brokers must uphold “high standards of commercial honor and just and equitable principles of trade.” It may also be considered a violation of FINRA Rule 3260 — which prohibits brokers from making discretionary trades without prior written authorization from their customers’ and firm approval — and FINRA Rule 2020, which prohibits them from using fraudulent or deceptive devices to transact securities

James Paige Based in Vero Beach, Florida

Paige joined Wells Fargo Clearing Services in 2008, working out of the firm’s branch office in Vero Beach, Florida. His career as a broker also includes tenures at Morgan Stanley and Blinder Robinson & Company. With 34 years of experience as a broker, he has passed two state securities law exams and three general industry/products exams.

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