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Investor Alleges James Parascandola Excessively Traded Their Account

James Parascandola (CRD #: 2866028), a broker registered with Pruco Securities, allegedly engaged in excessive trading, according to his BrokerCheck record, accessed on July 23, 2022. Investors may also have engaged his services through Prudential Financial Planning Services. Keep reading if you have questions about James Parascandola’s conduct as a broker.

Investor Dispute

On June 17, 2022, an investor alleged that James Parascandola made their portfolio unsuitable and excessively traded in their brokerage account in 2021. This dispute is currently pending.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consider their investor’s profile, which includes information about their age, risk tolerance, and tax status. 

High-risk securities are often unsuitable due to the likelihood of loss. Illiquid investments may also be unsuitable for some investors, due to the fees associated with attempting to sell the investment early.

Excessive trading, also known as churning, is quantitatively unsuitable. An excessive number of trades generates fees and commissions that can reduce or completely consume an investor’s returns.

Brokers also have a responsibility to recommend suitable investment strategies. For example, overconcentrating investments in one stock or sector comes with a degree of risk that may be unsuitable given an investor’s profile.

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

Background Information

James Parascandola has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • Series 7TO – General Securities Representative Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

James Parascandola is a registered broker in nine states and a registered investment adviser in New Jersey.

He has also worked for the following firms:

  • Equitable Advisors (CRD#:6627)
  • Edward Jones (CRD#:250)
  • MF Global (CRD#:6731)
  • Barclays Capital (CRD#:19714)

Kurta Law Can Help

If you worked with James Parascandola and you have concerns about your investments, please contact us today at 877-600-0098 or 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.