Haselkorn & Thibaut law offices (InvestmentFraudLawyers.com) are investigating broker Paul Mauro and SagePoint Financial from Westborough, Massachusetts. According to the BrokerCheck report, Mauro was subject to nine customer disputes, two regulatory actions, and one criminal matter during his career. InvestmentFraudLawyers.com is currently investigating SagePoint also regarding it’s sale of GPB Capital to investors.
According to records held by the Financial Industry Regulatory Authority (FINRA), customer complaints against Mauro relate to allegations of unsuitable investments and misrepresentations.
Paul Mauro SagePoint Financial Claims Investigation
In February 2018, as a result of Mauro’s exposed incidents, the State of Massachusetts Securities imposed conditions on Mauro registration in Massachusetts and claimed that it was placed under increased supervision by its brokerage firm.
In December 2018 a customer alleged that Mauro had purchased a variable annuity in 2017, bringing $6,630 in damages. The claim was denied.
In June 2017 a customer submitted a complaint alleging that Mauro had made unsuitable recommendations resulting in $86,000 damages. The claim was denied.
Brokers are required under the securities law to treat their clients fairly and equitably. This obligation includes the obligations to disclose the material risks of the investments they propose and to present products, particularly complex or confusing products, fairly and equitably allowing the client to assess the recommendation.
Advisors are only to make suitable recommendations for investments for the client. Many investments are not suitable for most investors or certain investors because of their risk tolerance, age, and other factors. Advisers should not present investment options that are outside of the risk profile to clients.
There are two primary filters that financial advisors must use to determine whether an investment is suitable for a client.
Firstly, the proposal must have a reasonable basis – meaning that the product has been investigated and that due diligence has been carried out in aspects, benefits, risks, and other relevant factors of investment. The adviser must decide that the investment is suitable for at least some investors and that some securities may be suitable for anyone.
Secondly, the broker must match the investment to suit the specific investment needs of the customer, such as the client’s retirement status, long-term or short-term goals, age, disability, income needs, or any other relevant factor.
According to NY Times, a study showed that 7.3% of financial advisors had a customer complaint when records were examined from 2005 to 2015. Brokers must publicly disclose reportable events on their BrokerCheck reports including customer complaints, citations. IRS tax, judgments, investigations, finishes, and criminal cases.
Also, the research showed a disruptive pattern with troubled brokers where high volume customer brokers are not initiated but instead, brokers are moved to lower quality brokerage firms that have released employee practices and rates. higher customer complaints. These low-quality firms can have average brokers of five times more complaints as an industry medium.
Mauro entered the securities industry in 1976. From June 2007 to November 2017, Mauro was registered with SII Investments, Inc. Since November 2017 Mauro has been involved with SagePoint Financial from the firm’s Westborough, Massachusetts office location.
Investors who have suffered losses are encouraged to contact us at 1-800-856-3352 for consultation. At Haselkorn & Thibaut, our attorneys have experience on behalf of investors who have suffered security losses due to the mishandling of their account. Claims may be brought into securities arbitration before FINRA. Our consultations are free and we are only compensated if you succeed in the recovery of your funds.