James A. Parrelly (also known as Jim Anthony Parrelly) of Dearborn, Michigan, a stockbroker formerly registered with Investment Planners Inc., has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings of Parrelly’s refusal to comply with a FINRA investigation concerning his potential unauthorized communications relating to securities business. Letter of Acceptance, Waiver, and Consent No. 2020067338101 (June 28, 2022).
According to the AWC, FINRA’s investigation into Parrelly focused on whether Parrelly violated written supervisory procedures of Investment Planners as it pertained to his use of a private email to engage in securities business. On May 3, 2022, FINRA requested that Parrelly testify in the investigation. He was warned that he could face sanctions if he did not cooperate.
On May 24, 2022, Parrelly informed FINRA that he understood what was asked of him and that he would not testify at any point in the investigation. FINRA found that Parrelly violated Rules 8210 and 2010, given his obstruction of the investigation.
This is not the first time that Parrelly has been sanctioned by FINRA. The AWC states that Parrelly has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity based upon findings that he made unauthorized trades in a customer’s account during the time that he was employed by Investment Planners. Letter of Acceptance, Waiver, and Consent No. 2019062166301 (May 5, 2020). According to the AWC, the customer did not provide written authorization for Parrelly’s discretionary trading. Parrelly violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 2510.
Parrelly has been identified in nine customer initiated investment related disputes concerning accusations of his activities while employed by Kidder Peabody Co., Investment Planners, First Midwest Securities Inc., Spelman Co. Inc., North American Financial Group Inc., and Hamilton Investments Inc.
FINRA Public Disclosure shows that a customer initiated investment related FINRA securities arbitration claim regarding Parrelly’s activities was resolved for $290,000.00 in damages supported by allegations of misrepresentation, breach of contract, and breach of fiduciary duty concerning common and preferred stock transactions by Parrelly while he was associated with Hamilton Investments.
Another customer initiated investment related FINRA securities arbitration claim concerning Parrelly’s conduct was settled for $27,000.00 in damages founded on accusations of churning, unauthorized trading, misrepresentation, and unsuitable trading of stocks, equities, and index options at Hamilton Investments. According to the claim, fraudulent misrepresentations were made to the customer. The claim also alleges negligence and violation of Michigan securities law.
Parrelly is referenced in a different customer initiated investment related FINRA securities arbitration claim which was resolved for $90,000.00 in damages based upon allegations of excessive commissions, churning of the customer’s account, and unsuitable trading concerning listed equities during the time that Parrelly was employed by First Midwest Securities Inc. According to the claim, unauthorized transactions in the customer’s account resulted in damages.
On August 25, 2020, another customer initiated investment related FINRA securities arbitration claim concerning Parrelly’s activities was settled for $375,000.00 in damages supported by accusations of unsuitable trading, negligence, and excessive trading concerning common and preferred stock and promissory note products while Parrelly was associated with Investment Planners. FINRA Arbitration No. 19-00818.
Parrelly is also the subject of a customer initiated investment related FINRA securities arbitration claim which was resolved for $25,000.00 in damages founded on allegations of Parrelly’s negligence and unsuitable trading of common stocks and preferred stocks for the customer’s account at Investment Planners. FINRA Arbitration No. 21-00895 (April 28, 2022).