Paul Murphy Calton & Associates Investment Losses?

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Updated on: June 1, 2022

National Investment Fraud Lawyers KlaymanToskes Investigates Calton & Associates Florida Broker Paul William Murphy

Paul William Murphy (CRD # 5132291), who is currently a Calton & Associates registered representative out of Florida, has two pending customer disputes where the claimants are seeking nearly $600,000. Murphy been registered as a broker and investment adviser with Calton & Associates since 2015.

Paul William Murphy Named in Investor Complaints

According to FINRA BrokerCheck, Murphy is facing two pending customer disputes. Both disputes were filed in November 2021. The first customer dispute is seeking over $450,000 in damages. The claim alleges unsuitable investments and breach of fiduciary duty. The date range of the customer dispute is between August 2014 and August 2016. The second customer dispute is seeking over $130,000 in damages. The claim alleges unsuitable investments and breach of fiduciary duty. The date range of the customer dispute is between April 2015 and October 2015.

What is Unsuitable Investment Advice?

FINRA established a “suitability” rule which requires brokerage firms and its financial advisors to have a “reasonable basis” for recommending investments or investment strategies, as suitable based on a customer’s investment profile. The rule requires “reasonable diligence” to gather all necessary information to formulate a basis for recommendations based on the following customer investment profile information:

  • age;
  • other investments;
  • employment status;
  • tax status;
  • investment objectives;
  • financial situation and needs;
  • investment experience;
  • investment time horizon;
  • liquidity needs;
  • risk tolerance, and
  • any other information disclosed by customer in connection with recommendation.

The FINRA suitability rule applies to a financial advisor’s investment advice whether it is a buy, sell or hold recommendation. The rule applies a flexible approach to the “facts and circumstance” of a particular customer recommendation. A recommendation does not rely upon a transaction or the generation of compensation for its existence. A recommendation can result from financial advisor communication directed to facilitate a transaction or refrain from any transactions regarding a security or investment strategy in a customer account. The financial advisor must have a firm understanding of both the investment and the customer. Failure to supervise a financial advisor’s understanding of how a particular investment works or what a specific client needs is at a minimum the basis for a negligence claim as another violation of the FINRA sales practice rules and regulations.

KlaymanToskes can help you determine whether an investment loss is the result of unsuitable investment advice. Investors who suffer losses as a result of unsuitable investment advice may be able recover their losses in a FINRA arbitration claim.

Registration History of Paul William Murphy

Paul William Murphy has been registered as a broker since 2006. He is currently registered with Calton & Associates in Florida as an investment adviser and a broker. He has been with the firm since 2015. Before joining Calton & Associates, Murphy was registered with Newport Coast Asset Management as a broker in Ocala, Florida from March 2008 to February 2015. During that same time, he was registered as an investment adviser with Newport Coast Securities, Inc. Notably, FINRA expelled Newport Coast Securities from the securities industry in June 2018.

Lose Money Investing with Paul Murphy?

Current and former customers of Calton & Associates broker Paul Murphy with losses in excess of $100,000, and those who may have information relating to the handling of their account, is encouraged to contact Lawrence L. Klayman, Esq. at +1 (888) 997-9956.

About Us

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $230 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico