Investment Planners Stockbroker Barred For Unauthorized Trading
James Anthony Parrelly (also known as Jim Anthony Parrelly) of Dearborn Michigan a stockbroker currently registered with Investment Planners Inc. has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he effected unauthorized trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2019062166301 (May 5, 2020).
According to the AWC, between April of 2015 and November of 2018, Parrelly effected approximately one hundred transactions without generating pre-trade confirmations from a customer. The AWC stated that there was no authorization in writing provided by the customer to warrant Parrelly’s exercise of discretion. Investment Planners did not provide the stockbroker with any written authorization to engage in discretionary trading either. FINRA determined that Parrelly’s conduct was violative of FINRA Rules 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Parrelly has been identified in eight customer initiated investment related disputes containing allegations of his misconduct while employed with American Investment Services, Spellman Co., Kidder Peabody Co. Inc., First Midwest Securities Inc., North American Financial Group Inc., Hamilton Investments Inc., and Investment Planners. FINRA Public Disclosure reveals that a customer initiated investment related arbitration claim involving Parrelly’s conduct was settled for $150,000.00 in damages based upon allegations including fraud and the breach of a fiduciary duty relating to over-the-counter equities transactions effected by Parrelly while he was associated with American Investment Services and Spellman Co. According to the claim, transactions were unsuitable and violated Michigan law.
Parrelly is the subject of a customer initiated investment related arbitration claim which settled for $90,000.00 in damages based upon allegations that the First Midwest Securities customer’s account was churned by Parrelly and that trades lacked the customer’s knowledge or consent. The claim also alleges that Parrelly’s trading failed to be suitable and that he overcharged the customer. On April 1, 2019, another customer filed an investment related arbitration claim involving Parrelly’s conduct in which the customer requested $500,000.00 in damages based upon allegations including that Parrelly excessively and unsuitability traded in the customer’s Investment Planners account and that his negligence with regard to promissory note or stock transactions had caused the customer to incur losses. FINRA Arbitration No. 19-00818 (Apr. 1, 2019).
Parrelly has been registered with Investment Planners since March 9, 2015.