March, 2025 | Based in San Mateo, CA
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Essential Information About Paul M Getty
- Full Name: Paul M Getty
- CRD Number: 6470002
- Current Location: San Mateo, CA
- Current Employer: Emerson Equity LLC (since 08/20/2024)
- Office Address: 155 Bovet Road, Suite 725, San Mateo, CA 94402
- Registration Status: Currently registered with 1 Self-Regulatory Organization and in 15 U.S. states/territories
- State Licenses: Series 63, Series 22, Series 62, and SIE
- Experience: In the industry since 2015
- FINRA BrokerCheck: 3 Customer Disputes
- Previous Employers: LightPath Capital, Inc. (10/2017-09/2024), Emerson Equity LLC (03/2017-11/2017), Colorado Financial Service Corporation (01/2016-03/2017), Concorde Investment Services, LLC (07/2015-12/2015)
- Ability to Recover Losses: Potential FINRA arbitration eligibility for recent investments
The Troubling Pattern of Customer Disputes: What Investors Need to Know
Paul M Getty, a financial advisor currently registered with Emerson Equity LLC in San Mateo, California, has a concerning history of customer disputes according to his FINRA BrokerCheck report. While Getty maintains active licenses in 15 states and territories, investors should be aware of the significant complaints that have been filed against him, all of which resulted in substantial settlements.
Our investigation into Getty’s professional background has uncovered a pattern of customer disputes centered primarily around a specific failed real estate private placement investment. These disputes raise serious questions about Getty’s due diligence practices, risk disclosure protocols, and suitability determinations when recommending investments to clients.
NP Skyloft: The Investment at the Center of Multiple Disputes
The most notable pattern in Getty’s disclosure record involves three separate customer disputes related to a real estate private placement known as “NP Skyloft.” This investment, which was marketed to multiple clients between late 2019 and early 2020, ultimately failed, resulting in significant investor losses and leading to multiple FINRA arbitration claims.
According to the arbitration filings, clients collectively invested over $2.8 million in this investment, which was focused on student housing properties. The investment failed in late 2021, allegedly due to two primary factors:
- The impact of the COVID-19 pandemic on the student housing sector
- The sponsor’s failure to repay bridge equity that had been borrowed to acquire the property
Investors filed claims alleging numerous violations, including:
- Violation of federal securities laws
- Violation of California securities laws
- Unfair, unlawful, and fraudulent business practices
- Breach of contract
- Common law fraud
- Breach of fiduciary duty
- Negligence and gross negligence
While Getty has consistently denied all allegations, the disputes have resulted in substantial settlements totaling over $535,000, with Getty personally contributing more than $163,000 toward these settlements.
The Settlement Details: A Concerning Pattern
The three FINRA arbitration cases related to the NP Skyloft investment were settled as follows:
Case 1: FINRA Arbitration #23-01331
- Filed: May 19, 2023
- Settled: April 5, 2024
- Alleged Damages: $696,494.19 (two investors: $425,000 and $271,494.19)
- Settlement Amount: $130,393.19
- Getty’s Personal Contribution: $40,907.67
Case 2: FINRA Arbitration #22-01846
- Filed: August 16, 2022
- Settled: February 9, 2023
- Alleged Damages: $150,000.00
- Settlement Amount: $25,000.00
- Getty’s Personal Contribution: $3,562.30
Case 3: FINRA Arbitration #22-02358
- Filed: December 22, 2022
- Settled: April 5, 2024
- Alleged Damages: Investment amount of $2,034,006.00
- Settlement Amount: $379,606.81
- Getty’s Personal Contribution: $119,092.33
While settling a dispute is not an admission of wrongdoing, the fact that Getty personally contributed significant amounts toward these settlements is noteworthy. Typically, when registered representatives believe they acted appropriately, the brokerage firm would assume full responsibility for any settlement. Getty’s personal contributions may suggest an acknowledgment of potential liability issues.
Beyond NP Skyloft: Getty’s Complex Business Network
Getty’s BrokerCheck report reveals an unusually complex network of outside business activities that investors may not be fully aware of. Getty reported being involved with at least eight different business entities, including:
1. FGG, Inc. (DBA First Guardian Group) – Investment related company where Getty serves as President & CEO
2. Multiple real estate investment and management companies, including:
- FGG-LHI Fund I LLC
- FGG-LHI Management I LLC
3. Multiple technology investment management companies, including:
- Sawick Mezzanine Fund II LLC
- Satwick Mezzanine Fund III, LLC
- Satwick Mezzanine Fund IV, LLC
While Getty reported resigning from management positions in several of these entities effective September 30, 2024, this complex web of business relationships raises questions about potential conflicts of interest and how clearly these were disclosed to clients.
Red Flags for Investors: What This Case Reveals
The Getty case highlights several important red flags that all investors should be vigilant about when working with financial advisors:
1. Concentration in Speculative Investments
The NP Skyloft case demonstrates the dangers of overconcentration in speculative private placement investments. Private placements are typically illiquid, meaning investors cannot easily sell their positions if needed. They also often involve higher levels of risk than traditional publicly traded securities.
FINRA Rule 2111 requires that advisors recommend suitable investments based on the customer’s investment profile. Placing significant portions of a client’s portfolio in a single speculative real estate investment may violate this fundamental obligation.
2. Inadequate Due Diligence
The failure of the NP Skyloft investment raises questions about the level of due diligence performed by Getty and his firms. Proper due diligence would include thoroughly investigating the sponsor’s financial stability, track record, and capital structure – including any bridge loans used to finance the acquisition.
Financial advisors have a duty to conduct reasonable investigation into the risks and rewards of any recommended investment, particularly when dealing with private placements that are exempt from SEC registration requirements.
3. Incomplete Risk Disclosure
In his broker statements responding to the complaints, Getty consistently maintains that “all known risks related to the investment were disclosed.” However, the key question is whether all reasonably foreseeable risks were adequately disclosed to investors before they committed their capital.
While a global pandemic may have been difficult to predict, the underlying financial structure of the investment – including the use of bridge equity financing – represented a risk factor that should have been clearly explained to potential investors.
4. Complex Business Relationships
Getty’s involvement in multiple outside business activities raises questions about potential conflicts of interest. When advisors have financial interests in multiple entities that may interact with or benefit from client investments, this creates the potential for divided loyalties.
FINRA Rule 3270 (Outside Business Activities of Registered Persons) and Rule 3280 (Private Securities Transactions of an Associated Person) are designed to ensure proper disclosure and supervision of such activities.
Legal Framework: Understanding Your Protections
Investors who work with financial advisors like Paul Getty are protected by numerous regulations designed to ensure fair treatment. Understanding these rules can help you identify whether your advisor may have violated their legal obligations:
FINRA Rule 2010: Standards of Commercial Honor
This foundational rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. This broad ethical standard underlies all of a broker’s obligations to their clients.
FINRA Rule 2111: Suitability
Brokers must have a reasonable basis to believe that a recommended transaction or investment strategy is suitable for the customer based on the customer’s investment profile, including:
- Age
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Time horizon
- Liquidity needs
- Risk tolerance
FINRA Rule 2020: Use of Manipulative, Deceptive or Fraudulent Devices
This rule prohibits brokers from using manipulative, deceptive, or fraudulent devices or contrivances in connection with the purchase or sale of securities.
Securities Act of 1933, Section 17(a)
This section prohibits fraud in the offer or sale of securities, which can include material misrepresentations or omissions in connection with the sale of private placements.
Securities Exchange Act of 1934, Section 10(b) and Rule 10b-5
These provisions prohibit deceptive practices in connection with the purchase or sale of securities, including making untrue statements of material fact or omitting material facts necessary to make statements not misleading.
Guidance for Affected Investors: Steps to Take If You Worked with Paul Getty
If you invested with Paul Getty or through his firms (including LightPath Capital, Inc. or Emerson Equity LLC), particularly in the NP Skyloft investment or similar private placements, you should consider taking the following steps:
1. Gather and Review All Investment Documentation
Carefully examine all documents related to your investments, including:
- Private Placement Memoranda (PPMs)
- Subscription agreements
- Risk disclosure forms
- Account statements
- Email communications
- Marketing materials
Look for discrepancies between what was represented verbally and what was disclosed in writing, particularly regarding risk factors and the use of bridge financing.
2. Assess the Suitability of Your Investments
Consider whether the investments recommended to you were appropriate given your:
- Investment objectives
- Risk tolerance
- Financial situation
- Age and retirement timeline
- Liquidity needs
If you were placed in high-risk private placements despite having a conservative investment profile or needing access to your funds, this may indicate unsuitable recommendations.
3. Evaluate Concentration Levels
Determine what percentage of your portfolio was invested in NP Skyloft or similar private placements. Financial advisors should typically recommend diversification across various asset classes to reduce risk. Excessive concentration in a single investment, particularly a speculative one, may indicate improper advice.
4. Understand Time Limitations
Be aware that there are strict time limitations for filing claims:
- FINRA arbitration claims generally must be filed within six years of the event giving rise to the claim
- State securities laws may have different statutes of limitations
- The sooner you act, the better positioned you are to recover losses
5. Consult with an Experienced Securities Attorney
An investment fraud attorney can help you:
- Evaluate whether you have a viable claim
- Calculate the full extent of your damages
- Navigate the FINRA arbitration process
- Negotiate with brokerage firms for potential settlements
- Represent you if your case proceeds to a hearing
How Our Law Firm Can Help You Recover Losses
Our law firm specializes in helping investors who have suffered losses due to broker misconduct. We have a proven track record of recovering funds for victims of investment fraud through FINRA arbitration and other legal remedies.
Expert Analysis of Private Placement Investments
Our team includes experts in analyzing private placement investments like NP Skyloft. We can:
- Determine whether proper due diligence was conducted
- Identify misrepresentations or omissions in offering documents
- Assess whether suitable risk disclosures were provided
- Evaluate the appropriateness of the investment for your specific situation
FINRA Arbitration Experience
We have extensive experience navigating the FINRA arbitration process, which is typically faster and less costly than traditional court litigation. Our attorneys:
- Have handled hundreds of FINRA arbitration cases
- Understand how to effectively present evidence to arbitration panels
- Know how to counter common defenses raised by brokerage firms
- Can guide you through every step of the process
Contingency Fee Structure
We work on a contingency fee basis, meaning:
- No recovery, no fee
- Our interests are aligned with maximizing your recovery
- You can pursue your claim without upfront legal costs
- We advance all case expenses
Securities Industry Knowledge
Our attorneys have in-depth knowledge of private placement offerings, including:
- Due diligence requirements
- Disclosure obligations
- Regulatory framework
- Red flags that indicate potential fraud or misconduct
If you’ve suffered investment losses while working with Paul M. Getty or have concerns about investments he recommended to you, taking prompt action is essential. Time limitations apply to investment fraud claims, and the sooner you seek legal advice, the better your chances of recovery. Call 800-950-6553 today or visit our website to schedule your free, confidential consultation with our experienced securities attorneys.
