Investment Planners Broker Jim Parrelly Supposedly Caused Investors’ Losses
Investor Alert! Financial Industry Regulatory Authority (“FINRA”) shows that James “Jim” Anthony Parrelly (CRD#: 728368, Dearborn, Michigan) is a problem securities broker. Notably, there are 12 disclosures on Parrelly’s record which all suggest that he did something wrong. This includes not just investor complaints or lawsuits about Parrelly, but also enforcement actions from state regulators and FINRA. Here’s more on a few recent disclosures concerning the broker.
Investment Planners Axes Relationship With Jim Parrelly Over Heightened Supervision
Apparently, Jim Parrelly submitted a voluntary resignation in June 2020. Notably, Investment Planners mentioned that when Parrelly resigned, he engaged in violations of firm policy and FINRA rules. Notably, he used his personal email account to speak with clients instead of using company emails. Supposedly, he did not keep records of these communications which suggests that he might have been trying to hide something from Investment Planners. In addition, Investment Planners says that Parrelly made unauthorized trades. It is possible that Parrelly voluntarily resigned just to avoid being fired for this misconduct.
FINRA Issues Parrelly Fine, Suspension For Discretionary Trading
Effective June 2020, Jim Parrelly was suspended by FINRA for discretionary trading. Basically, discretionary trading is where the securities broker makes trades without getting your permission before each trade. While at Investment Planners, Parrelly made discretionary trades in a client’s account even though he had no written authorization on file from a client. Not only that, but Investment Planners did not allow Parrelly’s trading in this way either.
Investment Planners Client Indicates That Jim Parrelly Was Churning Accounts, Making Unsuitable Transactions
Evidently, a client of Investment Planners filed a lawsuit about Jim Parrelly in April 2019. First of all, the Statement of Claim indicates that Parrelly was churning the client’s account. It seems that Parrelly purchased and sold stocks just so that he could make commissions or other compensation. He may have traded without taking into consideration the client’s best interests. Secondly, the Statement of Claim indicates that Parrelly or Investment Planners acted with negligence and had possibly breached a fiduciary duty. Thirdly, Parrelly supposedly made trades that did not fit with the client’s goals, risk tolerance or other suitability criteria. Because of this, the client demands $500,000 in compensation. As of September 20, 2020, this matter is still ongoing.
Prior Complaints Paint Bad Picture Of Parrelly
Notably, a First Midwest Securities client brought a lawsuit about Parrelly. Similar to what the Investment Planners client indicated, Parrelly allegedly harmed this First Midwest client by excessively trading or churning equities. In addition, the client indicated that Parrelly made unauthorized trades and that these transactions were not reasonable or suitable. As a result, First Midwest paid $90,000 to the client to resolve this matter.
Other complaints about the securities broker allege breach of fiduciary duty, breach of contract, and misrepresentation. In fact, American Investment Services paid one client $150,000 to settle allegations of Jim Parrelly’s violation of Michigan securities laws. He supposedly made high-risk and speculative trades.
Losses From Broker Jim Parrelly?
Have you experienced losses by investing with Jim Parrelly? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to misconduct of securities firms and brokers like Parrelly.