James Anthony Parrelly, a previously registered broker and investment adviser, was suspended in all capacities by the Financial Industry Regulatory Authority (FINRA) for allegedly engaging in discretionary transactions without the required written authority according to an investigation by attorney Alan Rosca.
Investor attorney Alan Rosca, of Rosca Scarlato LLC law firm is investigating conduct related to the suspension of James Anthony Parrelly by FINRA on the allegation of engaging in discretionary transactions without the required written approval.
Up till the time of his suspension, James Anthony Parrelly was in the employment of Investment Planners. He was registered with the FINRA member firm between March 2015 and July 2020. Jim Parrelly was in the employment of the firm when he allegedly committed the acts leading to the suspension.
According to FINRA, Parrelly voluntarily resigned from Investment Planners after the firm alleged that while Parrelly was under heightened supervision, he failed to abide by the terms of the heightened supervision plan, and engaged in unauthorized trading. Jim Parrelly reportedly resigned in response to the internal review of the alleged activities.
James Parrelly is currently an registered investment adviser with SB Advisory in Dearborn, Michigan, according to his IAPD Report. Before joining SB Advisory, former broker James Parrelly was an investment adviser with IPI Wealth Management.
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James Parrelly Was Suspended by FINRA for Unauthorized Discretionary Trading
Investor attorney Alan Rosca reviewed publicly available information and found that James Parrelly was the subject of a regulatory action instituted against him by the Financial Industry Regulatory Authority for failure to get written approval for discretionary trading and another customer dispute disclosure. This is according to the reports on his FINRA brokercheck page.
According to the reports, James Parrelly was suspended in a regulatory action in May 2020. The resolution to the regulatory action was reached by the suspended broker consenting to an Acceptance, Waiver & Consent (AWC) order.
Without admitting or denying the findings, he consented to the sanctions issued based on the allegations that he executed discretionary transactions in the securities account of a customer based solely on the customer’s verbal authorization. It was alleged that former broker James Parrelly failed to get the required written approval from the customer and the written approval of his firm to execute such discretionary trades.
According to the AWC, the discretionary trades were allegedly executed between April 2015 and November 2018. And this was allegedly a violation of NASD Conduct Rule 2510(b) and FINRA Rule 2010. Owing from this, he was suspended in all capacities for a period of 15 business days starting from beginning of June 2020. He was also required to pay $5,000 in civil and administrative penalties.
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James Parrelly Has Several Customer Dispute Disclosures
The investor attorney also finds reported in the brokercheck report that James Anthony Parrelly is subject to several customer dispute disclosures. A customer dispute initiated in April 2019 is based on the allegations of churning, negligence of duty and unsuitability of investments. The client in this dispute is seeking to recover $500,000 in damages.
James A. Parrelly was involved in a dispute disclosures reported as settled that was filed in September 2010. The client in this dispute alleged unauthorized, unsuitable and discretionary trading. The client also alleged churning of their accounts and excessive commissions.
The acts leading to the customer disputes were allegedly committed between October 2006 and December 2009. The client in this dispute sought to recover $200,000 in damages but the dispute was eventually settled for $90,000.
Investment adviser James Parrelly was also subject to a settled customer dispute disclosure filed in April 2003. This customer dispute was initiated on the allegations of unsuitable, high risk and speculative trading. The client further alleged breach of contract, fraud, promissory estoppel, breach of fiduciary duty and breach of Michigan securities law. Based on these allegations, the client sought to recover $3,000,000 in damages but the dispute was settled for $150,000
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating Potential Options on Behalf of Parrelly Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to James Anthony Parrelly’s suspension by FINRA for unauthorized discretionary transactions and customer dispute disclosures on the allegations of churning and unsuitability of investments among others.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world+ in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to James Parrelly’s suspension by FINRA for unauthorized discretionary transactions and customer dispute disclosures on the allegations of churning and unsuitability of investments among others, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
