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Jim Parrelly: FINRA Investigates, Bars Parrelly Financial Group Advisor
The Financial Industry Regulatory Authority has barred Dearborn financial advisor Jim Parrelly (CRD# 728368) in connection with allegations he refused to cooperate with an investigation into his conduct. FINRA and Securities and Exchange Commission records show that the Parrelly Financial Group representative was formerly a broker with Investment Planners and is currently an investment advisor with SB Advisory.
According to a Letter of Acceptance, Waiver, and Consent (No. 2020067338101) issued in June 2022, in May 2022 FINRA sent Mr. Parrelly a request to provide on-the-record testimony as part of its investigation into his “potential use of his personal email address to conduct securities business, in violation of Investment Planners’ written supervisory procedures.” As the AWC Letter notes, FINRA Rule 8210 gives FINRA the power to require persons under its jurisdiction to provide testimony regarding matters under its investigation. A few weeks after receiving FINRA’s request, the AWC Letter continues, Mr. Parrelly indicated to FINRA via counsel that he would “not appear for on-the-record testimony at any time.” FINRA found that his refusal constituted violations of FINRA Rules 8210 and 2010, barring him from associating with any FINRA member in any capacity.
FINRA also sanctioned Mr. Parrelly in May 2020, according to another disclosure on his BrokerCheck report. That sanction concerned allegations that he improperly executed discretionary transactions in a customer’s account, and resulted in FINRA issuing him a 15-day suspension and a $5,000 fine.
In 2006, according to his BrokerCheck report, the National Association of Securities Dealers sanctioned Mr. Parrelly in relation to allegations he recommended unsuitable mutual fund transactions in a customer’s account. The NASD fined him $5,000 and suspended him for 20 days.
Mr. Parrelly’s BrokerCheck report discloses multiple investor complaints against him, including several in recent years. A complaint filed in 2021, for instance, alleged that as a representative of Investment Planners, he engaged in negligence and made unsuitable trades. In 2022 the complaint reached a settlement of $25,000. An earlier complaint, filed in 2019, alleged churning, “negligence of duty,” and the recommendation of unsuitable investments. In 2020 this complaint reached a settlement of $375,000.
According to the Financial Industry Regulatory Authority and the Securities and Exchange Commission, Jim Parrelly holds 40 years of securities industry experience. Based in Dearborn, Michigan, he is an investment adviser with SB Advisory and was formerly a broker with Investment Planners. He is also associated with Parrelly Financial Group and Prosperity Financial Group. His past registrations include First Midwest Securities, Girard Securities, Spelman & Company, American Investment Services, North American Financial Group, Hamilton Investments, Painewebber, and Kidder Peabody & Company. He is licensed as an investment advisor in Michigan. (Information current as of June 28, 2022.)
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