Our firm is investigating Alex E. Paredes-Malaga (CRD# 7191576), a financial advisor currently registered with Merrill Lynch in Brea, California, for potential investment-related misconduct.
Financial Advisor’s Career History
BrokerCheck lists Paredes-Malaga’s investment-related employment beginning with Merrill Lynch, Pierce, Fenner & Smith Incorporated as a Financial Advisor Trainee (FADP) starting in October 2019, and also reflects an overlapping Financial Advisor Trainee (FADP) role with Bank of America, N.A. starting in January 2020, both in Brea, California.
Before joining Merrill/Bank of America in an advisor capacity, BrokerCheck reflects prior investment-related employment as a Trust Administrative Officer with U.S. Trust (October 2014–October 2019) in Pasadena, California, as well as earlier non-investment-related work as a mortgage servicing specialist at Bank of America (July 2011–October 2019) in Brea, California.
Paredes-Malaga Fraud Allegations and Investor Complaints Explained
BrokerCheck reports one customer dispute involving Paredes-Malaga.
Customer Dispute Overview (Written Complaint; Alleged October 2021 Misconduct)
According to the disclosure, the claimant alleged misrepresentation, unsuitable investment strategy, failure to follow instructions, and failure to act in clients’ best interest tied to conduct alleged to have occurred in October 2021. The reported product type was “Managed/Wrap Accounts (In House Money Manager).”
Key dates and figures reported in BrokerCheck include:
- Date complaint received: June 26, 2024
- Alleged damages: listed as $0.00, with an added note that “Damages not specified”
- Status (customer complaint information): Closed/No Action
- Status date: March 20, 2025
FINRA Arbitration Filing (Docket/Case No. 25-01658)
The disclosure also indicates an arbitration claim filed with FINRA, listing:
- Arbitration pending: Yes
- Date notice/process served: August 12, 2025
- Forum: FINRA
- Docket/Case #: 25-01658
Disclosures (for context)
- Customer dispute (1): Claimant alleged misrepresentation, unsuitable strategy, failure to follow instructions, and failure to act in client’s best interest (alleged October 2021; managed/wrap accounts). Disposition: Closed/No Action (status date March 20, 2025). Related FINRA arbitration: docket/case #25-01658 (arbitration pending listed as “Yes”).
To obtain a copy of Paredes-Malaga’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2111 (Suitability) generally requires that a broker have a reasonable basis to believe a recommended investment strategy is suitable for the customer based on the customer’s investment profile (including objectives, risk tolerance, time horizon, liquidity needs, and other factors). In a dispute alleging an “unsuitable investment strategy” involving managed/wrap accounts, the suitability analysis typically centers on whether the strategy matched the claimant’s profile and whether the risks, constraints, and expected performance characteristics were consistent with what the customer reasonably sought.
FINRA Rule 2090 (Know Your Customer) requires associated persons to use reasonable diligence to know—and retain—essential facts concerning each customer. Where a customer alleges the advisor failed to act in the client’s best interest and pursued an unsuitable strategy, the “KYC” inquiry often becomes pivotal: what was known (or should have been known) about the customer’s liquidity needs, risk tolerance, and investment objectives at the time the strategy was implemented, and whether that customer-specific information was adequately considered and refreshed.
FINRA Rule 2010 (Standards of Commercial Honor and Principles of Trade) broadly requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Allegations such as misrepresentation, failure to follow instructions, and not acting in the client’s best interest can implicate Rule 2010 because providing incomplete or misleading information—or disregarding customer directives in the handling of an account—may fall below the standards FINRA expects of registered representatives.
Losing your savings to a dishonest broker or advisor can be devastating, but you do not have to face it alone. Robert Wayne Pearce and his team have spent over four decades helping investors who were misled or defrauded by Wall Street firms. The Law Offices of Robert Wayne Pearce, P.A. takes cases nationwide on a contingency fee basis. You pay nothing unless we recover your losses. Call (800) 732-2889 or email pearce@rwpearce.com today for a free and confidential consultation.