July 2021- Dearborn, MI
According to publicly available records James Parrelly (CRD#728368), an unregistered broker who last worked for Investment Planners, Inc., discloses 3 regulatory events, 7 final customer disputes, 1 pending customer dispute and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In May 2020, FINRA case #2019062166301 alleged that Parrelly executed discretionary transactions in the securities account of a customer pursuant to the customer’s prior verbal authorization, but without written authorization from the customer or written approval from his member firm. Sanctions were a 15 suspension and a $5,000 fine.
In October 2006, NASD case #E8A2003033801 alleged that Parrelly recommended and effected transactions in shares of mutual funds for a public customer without having reasonable grounds for believing that the resultant transactions were suitable for the customer, he engaged in short-term trading and generated new commissionable sales instead of reinvesting the shares. Sanctions were a fine of $5,000.
From 1986 until 2010, seven customer disputes were filed alleging among other things, unauthorized, unsuitable and discretionary trading, churning, excessive commissions, high risk and speculative trading, breach of contract, fraud, promissory estoppel, negligence, malpractice, breach of fiduciary duty, violations of Securities and Exchange act of 1934, misrepresentation and failure to advise. These customer disputes were settled collectively for more than $800,000.
In April 2019, FINRA case 19-00818 was filed by a customer of Investment Planners, alleging churning, negligence of duty and unsuitable investments with alleged damages of $500,000. This case is still pending.
In June 2020, Parrelley was allowed to resign from employment from Investment Planners, Inc. after allegations that while on heightened supervision, he apparently was engaging or had engaged in activities in violation of firm policies and/or FINRA rules including (1) using personal email and texts to communicate with firm clients regarding their accounts (2) failing to abide by terms of his heightened supervision plan and (3) unauthorized trading.
Parrelly worked with Investment Planners, Inc. from March 2015 until July 2020. Before that time he was employed with First Midwest Securities , Girard Securities and Spelman & Co., Inc.
If you had an account with James Parrelly that suffered losses, you may be entitled to collect damages from his prior employer. Call to discuss your options.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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