James Anthony Parrelly (also known as Jim Anthony Parrelly) of Dearborn Michigan a stockbroker formerly registered with Investment Planners Inc. has been terminated on June 25, 2020 supported by allegations of Parrelly failing to comply with company policy. The securities broker dealer alleged that Parrelly made unauthorized trades in customer accounts and had failed to comply with rules when he was on heightened supervision. Investment Planners also indicated that Parrelly used unapproved devices to communicate with customers.
Parrelly has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Parrelly executed trades in customer accounts without permission. Letter of Acceptance Waiver and Consent No. 2019062166301 (May 5, 2020).
According to the AWC, Parrelly effected transactions on 100 occasions in which he failed to get pre-trade confirmations. Parrelly was not provided with written authorization for discretionary trading in customer accounts. He was also not permitted by the securities broker dealer to effect discretionary trades. Parrelly violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510(b).
Parrelly has been identified in eight customer initiated investment related disputes containing accusations of his bad sales practices while registered with First Midwest Securities Inc., Hamilton Investments Inc. and North American Financial Group Inc. FINRA Public Disclosure shows that a customer initiated investment related complaint regarding Parrelly’s conduct was resolved for $100,000.00 in damages founded on allegations including misrepresentation and breach of fiduciary duty.
Parrelly is also the subject of a customer initiated investment related written complaint which was resolved for $150,000.00 in damages supported by accusations including breach of fiduciary duty and fraud as it pertained to over-the-counter equities transactions during the period that Parrelly was associated with Spelman Co. and American Investment Services. The claim alleges unsuitable trading and the violation of Michigan securities laws.
Another customer initiated investment related complaint concerning Parrelly’s conduct was settled for $90,000.00 in damages based upon allegations that the customer’s account was churned and that they had been overcharged on trades when Parrelly was associated with First Midwest Securities. The claim alleges that unsuitable and unauthorized trades had been executed in the customer’s account.
Parrelly is also referenced in a customer initiated investment related FINRA securities arbitration claim where the customer sought $500,000.00 in damages founded on accusations of unsuitable investments including promissory notes and stocks being sold to the customer by Parrelly at Investment Planners. FINRA Arbitration No. 19-00818 (Apr. 1, 2019). According to the claim, the customer sustained damages from the stockbroker’s negligence and churning of their investment portfolio.
Parrelly’s registration with Investment Planners has been terminated as of July 23, 2020.