James Parrelly Indefinitely Barred by FINRA
James Parrelly (CRD #: 728368), a broker formerly registered with Investment Planners, has been barred by FINRA, according to his BrokerCheck record, accessed on October 7, 2022. If you want to know more about his conduct as a broker, keep reading.
Bar by FINRA
On June 28, 2022, James Parrelly was barred by FINRA following his alleged failure to appear for on-the-record testimony in conjunction with a FINRA investigation into his alleged use of a personal email address to conduct securities business, in violation of his member firm’s written supervisory procedures (WSPs).
A Letter of Acceptance, Waiver & Consent (AWC) determined that these allegations constituted violations of FINRA Rules 8210 and 2010.
FINRA Rules 8210 and 2010
FINRA Rule 8210 requires brokers to provide information, documents, and testimony upon FINRA request.
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
FINRA barred James Parrelly indefinitely starting on June 28, 2022.
You can read a copy of the AWC here.
Bankruptcy
On September 30, 2021, James Parrelly filed for bankruptcy.
Resignation from Investment Planners
On June 25, 2020, James Parrelly resigned from Investment Planners, allegedly following a period of heightened supervision during which the firm allegedly found evidence of the following allegations:
- Use of personal email and text messages to communicate with firm clients about their accounts
- Failure to abide by the terms of his heightened supervision plan, including the above violation and failure to provide copies of these communications to the firm
- Unauthorized trading
FINRA Rule 3260
FINRA Rule 3260 limits brokers to exercising their trading discretion in discretionary accounts, authorized for discretionary trading by both the client and the firm.
FINRA Suspension
On May 5, 2020, James Parrelly consented to the entry of findings that he allegedly executed discretionary trades in a client’s account without written authorization from the client or his firm, Investment Planners.
A Letter of Acceptance, Waiver & Consent (AWC) alleged that, between April 2015 and November 2018, James Parrelly executed discretionary transactions in a client’s securities accounts on approximately 100 separate dates.
The client allegedly provided verbal authorization for discretionary trading in her account, but according to the AWC, James Parrelly allegedly failed to obtain written authorization from her or Investment Planners prior to executing discretionary transactions.
The AWC concluded that these allegations violated NASD Conduct Rule 2510(b) and FINRA Rule 2010.
Sanctions
James Parrelly consented to the following sanctions:
- $5,000 fine
- 15-day suspension from any FINRA member firm
His suspension ran from June 1 to June 19, 2020.
You can read the full AWC here.
Investor Dispute
On April 1, 2019, an investor named James Parrelly in allegations involving churning and unsuitable investments. The client sought $500,000 in damages and received a settlement of $375,000.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to take their clients’ financial goals into account when recommending investments. Brokers must use the information described in an investor’s profile, such as their age, tax status, and risk tolerance.
Churning, or excessive trading, is also a violation of this rule. An excessive number of trades can generate high fees and commissions that quickly overtake investors’ returns.
Investors who rely on their brokers for their recommendations or trading discretion may be able to recover their losses through FINRA arbitration.
Background Information
James Parrelly has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 24 – General Securities Principal Examination
- Series 8 – General Securities Sales Supervisor Examination (Options Module & General Module)
In the past, he worked for the following firms:
- Investment Planners (CRD#:18557)
- First Midwest Securities (CRD#:21786)
- Girard Securities (CRD#:18697)
- Spelman & Company (CRD#:10232)
- American Investment Services (CRD#:21111)
- North American Financial Group (CRD#:22273)
- Hamilton Investments (CRD#:821)
- PaineWebber (CRD#:8174)
- Kidder, Peabody & Company (CRD#:7613)
Kurta Law Can Help
If you worked with James Parrelly and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.
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