Our firm is investigating LPL Financial broker and investment adviser James Patrick Chiaro (CRD# 4866429) of Dunmore, Pennsylvania for potential investment-related misconduct.
James Patrick Chiaro’s Career History
James Patrick Chiaro is currently registered with LPL Financial LLC in Dunmore, Pennsylvania, where he has been registered as both a broker and an investment adviser since August 18, 2017. BrokerCheck shows prior registrations with Citizens Securities, Inc. from 2007 to 2017 and PNC Investments from 2005 to 2007. The report also reflects employment history entries including LPL Financial, LLC and CCO Investment Services Corp.
James Patrick Chiaro Fraud Allegations and Investor Complaints Explained
FINRA BrokerCheck reflects two customer disputes for Mr. Chiaro, both tied to his time at LPL Financial LLC. One matter ended in a settlement, while another was denied. BrokerCheck also notes that disclosure events can include contested allegations that may be resolved without any admission or finding of wrongdoing.
February 2021 FINRA Arbitration Alleging Delayed Trade Execution
According to BrokerCheck, a customer alleged that Mr. Chiaro did not execute trades in the customer’s account when he said he would, causing losses during the activity period from January 1, 2020 through May 31, 2020. The claimed damages were $171,000. The matter was filed in FINRA arbitration on February 4, 2021 under docket number 21-00311, received as a complaint on February 5, 2021, and later settled on August 31, 2022 for $34,750, with an individual contribution of $14,500.
May 2020 Complaint Alleging Unauthorized ETF Sales and Mismanagement
BrokerCheck also reports a written customer complaint received on May 12, 2020 alleging that sales of ETFs on March 20, 2020 were unauthorized and that the account was mismanaged afterward. The customer reportedly claimed losses exceeding $250,000 and sought reimbursement. The matter was denied on July 16, 2020. The broker statement in the report says the sales were specifically discussed and authorized before execution, that the customer received email confirmations and raised no objections, and that later mismanagement allegations were also denied.
Disclosure Summary
- Customer Dispute 1 — Allegation that trades were not executed when promised, causing losses during January 1, 2020 to May 31, 2020; alleged damages of $171,000; FINRA arbitration filed February 4, 2021; settled August 31, 2022 for $34,750; individual contribution: $14,500.
- Customer Dispute 2 — Allegation that ETF sales on March 20, 2020 were unauthorized and the account was mismanaged thereafter; customer claimed losses exceeding $250,000; complaint received May 12, 2020; denied July 16, 2020.
To obtain a copy of James Patrick Chiaro’s FINRA BrokerCheck report, visit this link.
Robert Wayne Pearce Is Committed to Recovering Your Investment Losses
FINRA Rule 2010 requires brokers to observe high standards of commercial honor and just and equitable principles of trade. In a case like the settled 2021 arbitration, allegations that a broker failed to execute trades when promised can implicate Rule 2010 because customers are entitled to honest communications and fair dealing in the handling of their accounts. Even when a matter settles without an admission of wrongdoing, allegations involving delayed execution and resulting losses are the kind of conduct investors and regulators examine through that rule.
FINRA Rule 3260 governs discretionary trading and requires proper written authorization before a broker exercises discretion in a customer account. In the 2020 complaint, the customer alleged that ETF sales on March 20, 2020 were unauthorized. Although the complaint was denied and the broker stated the trades were discussed and approved beforehand, allegations of unauthorized transactions are commonly analyzed through the lens of Rule 3260 because the central question is whether the broker acted with actual customer authorization.
FINRA Rule 5310 addresses best execution and the duty to use reasonable diligence in handling customer orders. While that rule applies at the firm level, allegations that trades were not executed at the time represented to the customer can raise the same order-handling concerns that Rule 5310 is designed to address. In practical terms, if a delay in execution caused avoidable losses, investors may scrutinize whether the broker and firm handled the order process appropriately and in the customer’s best interest.
The Law Offices of Robert Wayne Pearce, P.A. is a nationally recognized securities law firm representing investors in FINRA arbitration and securities fraud cases on a contingency fee basis. Robert Wayne Pearce, the founding attorney, has more than 45 years of experience recovering millions for victims of broker misconduct and investment fraud. He previously defended major brokerage firms and now uses that insight to protect investors nationwide. To discuss your case directly with Mr. Pearce, call (800) 732-2889 or email pearce@rwpearce.com for a free consultation.
