Arizona investment adviser loses license after misleading clients about serving time for DUI

Arizona regulators revoked a Scottsdale investment adviser’s license and ordered him to pay $2,500 after finding he misled clients about a yearlong jail sentence and failed to disclose his felony conviction on required filings.

Paul Marascalco, who had owned Paul Marascalco Registered Investment Advisor since 2015, told clients he was taking a personal leave similar to a sabbatical. He was instead preparing to serve time for a DUI crash that injured passengers in another vehicle, according to the Arizona Corporation Commission.

Marascalco pleaded guilty to a felony in September 2021 and was sentenced to a 12-month jail sentence as part of his plea agreement.

Before his jail term, he sent clients an announcement explaining that another investment adviser would oversee their investments during his absence. Marascalco said he would remain involved in all decisions and trades involving their accounts.

He did not disclose that he would be incarcerated or that his continued involvement would be extremely unlikely while in jail, according to the commission.

One client independently discovered the felony conviction and ended their relationship with the firm because they felt Marascalco and his company had not been honest about his absence.

Marascalco also failed to disclose the conviction in mandatory regulatory filings in 2025 and 2026, which required disclosure of felony convictions within the previous 10 years, according to the commission.

The Arizona Corporation Commission found that his conduct constituted dishonest and unethical practices in the securities industry and violated the Investment Management Act.

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