Calton & Associates Financial Advisor Accused of Unsuitability and Misrepresentations
Paul William Murphy, currently a Calton & Associates registered representative, is named in two pending customer disputes where the claimants are seeking over $589K. These latest allegations appear to stem from when Murphy was a Newport Coast Asset Management and a Newport Coast Securities broker. Newport Coast was expelled by the Financial Industry Regulatory Authority (FINRA) in 2018.
Our Florida broker misconduct lawyers investigate claims of losses by investors who have worked with Paul Murphy as their financial advisor. In Florida, call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) at (813) 560-2992. You can also reach us nationwide at (800) 259-9010 today.
Investor Complaints Involving Calton & Associates Broker Paul Murphy Go Back Over a Decade
These latest FINRA arbitration claims involving Murphy were both brought in November 2021. One customer is requesting over $132K in damages. The other is seeking more than $457K in damages. However, Paul Murphy’s BrokerCheck record notes four earlier investor claims, including:
- October 2020: These unsuitability and misrepresentations allegations appear to have been during Murphy’s time with Calton & Associates and Newport Coast. The securities case was settled for $12,734.
- July 2017: This unsuitability claim was settled for $20,699.
- September 2011: This investor alleged unsuitability and received a $17,500 settlement.
- May 2020: In this FINRA arbitration claim, this investor settled for $47,500.
What is Unsuitability?
Brokers have a duty to only recommend investments, investing strategies, and trades that are suitable for each customer’s financial goals and investing experience. As a matter of fact, FINRA Rule 2111 stipulates that members or associated persons must have reasonable grounds for believing that the transaction or strategy they are recommending is a fit for the client. This is according to each customer’s investing profile and the required due diligence the financial advisor should conduct.
Unfortunately, unsuitability is a common cause of investor losses. There are brokers who, through negligence or willful action, will try to push products or trading strategies that are too risky for a customer or are not in line with their financial goals. The lure of high commissions is one incentive in which the client’s best interests are pushed to the side.
What Do Suitability and Unsuitability Mean in a Securities Arbitration Case?
SSEK Law Firm Senior Partner and securities lawyer Kirk Smith explains:
Seasoned Florida Broker Negligence Law Firm
Brokerage firms have a duty to properly oversee their financial advisors. They can be held liable in FINRA arbitration should broker misconduct lead to investor losses. Paul Murphy has been a registered representative for 15 years. Other firms where he used to work include JP Turner & Co., Capital Management, and Brookstreet Securities.
For over 30 years, SSEK Law Firm has fought and advocated for investors against the broker-dealers whose financial advisors were responsible for their losses. We have recovered many millions of dollars on behalf of our clients. Call our securities lawyers at (800) 259-9010 today if you suffered losses while working with this Calton & Associates broker.