STUART L PEARL Fined and Suspended

STUART L PEARL (STU PEARL), was fined $5,000.00 and suspended for three months (7/6/2021 - 10/5/2021) by FINRA. Pearl was previously registered both as a broker and investment advisor.  He was last registered with David A. Noyes and Company of Indianapolis, Indiana from 07/10/2015 - 04/01/2019.
On July 1, 2021, without admitting or denying FINRA’s findings, STUART L PEARL consented to the sanctions and to the entry of findings that he allegedly recommended the purchase of leveraged and inverse traded funds (Non-Traditional ETFs or NT-ETFs) to four clients without having a sufficient understanding of the risks and features associated with these products and having a reasonable basis to make these recommendations.
FINRA’s findings alleged that Pearl recommended nine NT-ETFs purchases to four clients at the firm. All of these transactions were solicited, according to FINRA. The clients held these positions for periods ranging from about 100 to 600 days, with the average holding period approximately 400 days. These extended holding periods allegedly caused STUART L PEARL’s clients to incur approximately $80,000 in losses.
According to FINRA, Pearl failed to perform a reasonable basis suitability analysis of NT-ETFs to understand the unique features and specific risks associated with these products before offering them to his clients. FINRA states that the prospectus for the NT-ETFs that STUART L PEARL recommended warned that the products were very risky, intended to be utilized only by knowledgeable investors who understood the features and risks associated with NT-ETFs, and should be actively and frequently monitored on a daily basis. FINRA alleges Pearl did not understand that losses in NT-ETFs are compounded because of how the valuations reset each day.
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, STUART L PEARL, has been in the securities industry for 32 years, listed with 5 firms, and has 9 disclosures on his FINRA CRD report. Five of these disclosures are “Customer Disputes,” and all have settled.
One of the disclosures is an “Employment Separation After Allegations,” from DAVID A. NOYES & COMPANY dated July 3, 2019, permitting Pearl to resign following allegations of, “Stuart Pearl resigned while on heightened supervision. He had not followed his heightened supervision plan and would have been terminated had he not resigned.”
There is another “Employment Separation After Allegations” disclosure listed, dated June 30, 2015, discharging STUART L PEARL from AMERIPRISE FINANCIAL SERVICES, INC., following the allegations of, “REGISTERED REPRESENTATIVE WAS SUSPENDED ON JUNE 22, 2015 AND SUBSEQUENTLY TERMINATED ON JUNE 30, 2015 FOR COMPANY POLICY VIOLATIONS RELATED TO: THE USE OF DISCRETION IN NON-DISCRETIONARY ACCOUNTS AND COMPLYING WITH SUPERVISION.” Pearl has denied these allegations.
If you’ve experienced investment losses due to the actions or recommendations of the former David A. Noyes and Company of Indianapolis, Indiana broker, STUART L PEARL, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group works on a contingency fee basis and represents clients nationwide before FINRA.