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Erez Law Investigates Investment Planners, Inc. Broker James Parrelly

Posted on Monday, July 20th, 2020 at 7:43 pm    

There are options for customers who suffered investment losses due to recommendations by Investment Planners, Inc. broker James Parrelly (CRD# 728368). Parrelly was registered with Investment Planners, Inc. in South Lyon, Michigan between 2015 and 2020, when he was terminated regarding “At time of his resignation, the Representative, who was on heightened supervision, apparently was engaging or had engaged in activities in violation of firm policies and/or FINRA rules, including: (1) use of personal email and texts to communicate with firm clients regarding their accounts; (2) failing to abide by terms of his heightened supervision plan (by continuing to use his personal email and texts and by not providing copies of his personal emails and texts to the firm); and (3) unauthorized trading. Representative resigned in response to the anticipated commencement of an internal review into his activities.”

In May 2020, FINRA sanctioned Parrelly to a $5,000 civil and administrative penalty and was suspended for 15 days after he, “consented to the sanctions and to the entry of findings that he 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.” 

Parrelly has been the subject of nine customer complaints between 1986 and 2021, according to his CRD report. The most recent complaint is regarding: 

April 2021. “Allegations of negligence, unsuitable trading activity in account over course of the relationship.” The customer is seeking $206,000 in damages.

April 2019. “Statement of Claim alleges churning, negligence of duty and unsuitable investments.” The customer is seeking $500,000 in damages and the case is currently pending. The complaint took place while Parrelly was registered with Investment Planners, Inc. and was regarding common and preferred stocks and promissory notes. 

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Investment Planners, Inc. may be liable for investment or other losses suffered by Parrelly’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.