Stu Pearl (CRD# 1500833), a previously registered broker and current Registered Investment Adviser (RIA) formerly with Sanctuary Advisors and now with International Assets Investment Management, is currently involved in an investor dispute in which a customer is seeking more than $2 million in damages, according to his BrokerCheck record accessed on July 3, 2020. According to BrokerCheck, Stu Pearl has been suspended by the Financial Industry Regulatory Authority (FINRA) and has twice been discharged from two different firms. Read on to learn more about this latest pending investor dispute involving Stu Pearl.
On May 18, 2020, a customer alleged that Stu Pearl created a margin trading account without discussing it without them. The client is seeking $2,088,124 in damages. The dispute is pending.
This is far from the only disclosure on Stu Pearl’s BrokerCheck record. He has also been the subject of four complaints that have since settled. He has also left two broker-dealers under less-than-ideal circumstances; he was permitted to resign from one broker-dealer and was terminated from another.
In 2012, a customer alleged Stuart Pearl, while employed at Ameriprise Financial Services, executed unauthorized trades and margin use. The complaint settled for $55,000.
In 2013, a customer alleged that Stu Pearl, while employed at Citigroup Global Markets and Morgan Stanley Smith Barney, made purchases and sales without consulting her. The complaint settled for $95,500.
In June 2015, Stu Pearl was terminated from his position at Ameriprise Financial Services following allegations of “company policy violations related to: the use of discretion in non-discretionary accounts and complying with supervision.”
In October 2017, FINRA sanctioned Stu Pearl following allegations he made discretionary transactions without authorization. FINRA’s findings further state: “[O]n May 14, 2015, Pearl used discretion to liquidate positions in six different securities with a total principal amount of approximately $20,000, on behalf of the customer, a senior investor. Although the customer had authorized Pearl to execute these liquidations in discussions that took place prior to May 14, 2015, Pearl failed to speak with the customer again on May 14, 2015, to confirm the customer’s authorization to make these sales. The findings also stated that Pearl made unsuitable recommendations in two other customers’ joint brokerage account when he recommended the customers use margin to effect several trades.” He was issued a 45-day suspension from the securities industry, which will commence on November 6, 2017, and a fine of $7,500. A copy of his Acceptance, Waiver, and Consent (AWC) agreement with FINRA can be viewed here.
On March 7, 2019, Stu Pearl was permitted to resign from David A. Noyes & Company. He had been on heightened supervision but had not followed his heightened supervision plan. According to BrokerCheck, had Stu Pearl not resigned, he would have been terminated. Three days later, on March 10, 2019, a customer alleged that Stu Pearl put a large hedge position in their account without their knowledge. The customer sought $85,000 in damages; the dispute later settled.
Stu Pearl has spent 32 years in the securities industry. He is not currently registered as a broker, though he was previously registered. He is currently a Registered Investment ADviser (RIA) and his Investment Adviser Public Disclosure (IAPD) report can be viewed here. He has worked for the following brokerage firms:
- David A. Noyes & Company (CRD#: 205)
- Ameriprise Financial Services, Inc. (CRD#: 6363)
- Morgan Stanley Smith Barney (CRD#: 149777)
- Citigroup Global Markets, Inc. (CRD#: 7059)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#: 7691)
He has passed the Series 65 – Uniform Investment Adviser Law Examination, the Series 63 – Uniform Securities Agent State Law Examination, the SIE – Securities Industry Essentials Examination, the Series 7 – General Securities Representative Examination.
If Stu Pearl was your broker or investment adviser and you have questions about your investments, don’t hesitate to contact the securities attorneys of Fitapelli Kurta to learn more about your options for investment loss recovery. Call (877) 238-4175 or email email@example.com for your free case consultation with a securities attorney.