If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
If you are a member of the media, please email ngarcia@azcc.gov or call (602) 542-0728.
Phoenix, Arizona - The Arizona Corporation Commission (“ACC”) ordered Paul Marascalco (“Marascalco”) and Paul Marascalco Registered Investment Advisor (“PMRIA”) (collectively, “Respondents”), who conducted business in Arizona, to pay $2,500 in administrative penalties for violations of the Investment Management Act. The Commission also revoked Marascalco’s sole proprietorship’s investment advisor license.
Marascalco has been owner of PMRIA and licensed investment adviser since 2015. In September 2021. Marascalco pled guilty to a class 3 felony for causing a vehicular collision while driving intoxicated due to alcohol, which resulted in injuries to passengers in the other vehicle. He agreed to be sentenced to a 12-month jail term as a condition of his plea agreement.
Before starting his jail term in November 2021, Marascalco arranged for another investment advisor to oversee his client’s investments in his absence. In announcing this change to his clients over email, Marascalco wrote that he would be taking a personal temporary leave of absence for a year and described it as a “sabbatical in some ways.” Marascalco wrote that he would remain engaged in all decisions and trades associated with clients’ accounts. Marascalco did not inform his clients that his ability to remain so engaged was extremely unlikely while he was incarcerated. One client discovered Marascalco’s felony conviction on their own and terminated their business with PMRIA because they felt that Marascalco and PMRIA were not honest about the nature of Marascalco’s absence.
Marascalco also failed to disclose his felony conviction to the ACC when filing mandatory forms, Form ADVs in 2025 and 2026. These forms required investment advisors and representatives to disclose any felony convictions within the past ten years. The ACC found the conduct of Marascalco constituted dishonest and unethical practices in the securities industry.
In addition to administrative penalties and license being revoked, the ACC ordered Marascalco and PMRIA, and any of their agents, to permanently cease and desist from violating the Investment Management Act and agree to never apply again for an investment advisor license with ACC. Respondents consented to entry of the order.
All documents relating to this agenda item can be in the Arizona Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21400A-26-0193. For further questions regarding this matter, contact the Investigator on Duty at the Arizona Corporation Commission’s Securities Division at 602-542-0662, or email SecuritiesDiv@azcc.gov.