Paul Murans Allegedly Misrepresented a Life Settlement Insurance Product

Paul Murans (CRD #: 3266607), a broker registered with Thurston Springer Financial, allegedly misrepresented an insurance product, according to his BrokerCheck record, accessed on January 26, 2023. Investors may have also worked with him through Thurston Springer Advisors. If you have questions about his alleged conduct as a broker, keep reading.

Investor Dispute

On November 17, 2022, an investor alleged that Paul Murans misrepresented a life settlement insurance product as a safe, short-term opportunity. The client alleged that the policies lapsed, resulting in losses. They seek $242,995 in damages in this pending dispute.

On August 23, 2019, an investor filed a dispute alleging that Paul Murans recommended unsuitable investments, executed unauthorized trades and an unauthorized credit line agreement, “un-invested” certain funds, and engaged in selling away with regard to life settlement contracts. This dispute was settled for $300,000.

In a dispute filed on November 7, 2018, an investor alleged that Paul Murans misrepresented an unsuitable life settlement contract between December 2, 2013, and October 20, 2017. The client further alleged that he engaged in unauthorized trading of structured products and failed to notify the client that she was borrowing from her loan account. The client received a settlement of $250,000.

On March 29, 2018, two married investors alleged that Paul Murans overconcentrated them in ProShares UltraPro Short S&P500 (SPXU) and ProShares UltraShort Russell2000 (TWM) as well as exchange-traded funds (ETFs), which they allege were unsuitable given their investment objectives. They additionally alleged that he overconcentrated them in unsuitable and risky energy-related investments.

Lastly, these investors alleged that UBS Financial Services failed to supervise Paul Murans’ actions during the relevant period of December 2012 to October 2017. This dispute was settled for $335,000.

A dispute filed on August 1, 2016, alleged that Paul Murans made unsuitable recommendations that did not fit the client’s risk tolerance and investment objectives. The client received a settlement of $75,000.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of fraudulent tactics, like manipulation or deception, as they relate to the purchase and sale of securities.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their financial goals, risk tolerance, and tax status.

Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.

FINRA Rule 3260

Unauthorized trading violates FINRA Rule 3260, which limits brokers to exercising their trading discretion in pre-approved discretionary accounts.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems over their employees in order to identify and avoid violations of securities regulations. Among other things, firms must appoint supervisors and ensure that they have sufficient training or experience.

Termination from UBS Financial Services

On October 10, 2017, Paul Murans was fired from UBS Financial Services for allegedly engaging in the following forms of misconduct:

• Facilitating purchases of life settlement products not listed on the firm’s platform
• Failing to properly escalate a client’s complaint and responding to it without firm approval
• Failing to disclose a client’s investment in an outside passive investment which the firm had previously given Paul Murans approval to invest in himself, in violation of firm policy

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Background Information

Paul Murans has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 31 – Futures Managed Funds Examination
• Series 7 – General Securities Representative Examination

Paul Murans is a registered broker in 24 states and a registered investment adviser in Indiana.

He has also worked for the following firms.

• UBS Financial Services (CRD#:8174).
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
• UBS PaineWebber (CRD#:8174)
• Midwest Discount Brokers (CRD#:29931)

Kurta Law Can Help

If you worked with Paul Murans and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.