VICTORIA THU-VAN PAZZALIA Investment Fraud Investigation: Unsuitable Real Estate Security Allegations

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Investment Fraud Alert: Victoria Thu-Van Pazzalia Faces Allegations of Unsuitable Investment Recommendations

If you’ve worked with financial advisor Victoria Thu-Van Pazzalia (CRD# 5920806), you should be aware of serious pending allegations against her. According to FINRA BrokerCheck records, Pazzalia is currently facing a customer dispute alleging she recommended an unsuitable real estate security investment that resulted in significant financial losses for her client.

The FINRA arbitration case (Docket #25-00347), filed on February 11, 2025, alleges that Pazzalia recommended an unsuitable investment in “NP Skyloft,” a real estate security, while she was employed at Purshe Kaplan Sterling Investments. The client is seeking $157,747.01 in damages, indicating substantial financial harm resulting from this allegedly inappropriate investment recommendation.

For investors who have worked with Pazzalia, particularly those who invested in real estate securities through her, this pending complaint raises serious concerns about her investment recommendations and adherence to suitability standards.

Understanding Unsuitable Investment Recommendations

Financial advisors like Victoria Pazzalia have a fundamental obligation to recommend only investments that are suitable for their clients based on factors including:

1. The client’s financial situation and needs
2. Investment objectives and time horizon
3. Risk tolerance and experience
4. Tax status and other individual circumstances

When advisors breach this duty by recommending investments that don’t align with these factors, they may be liable for resulting investment losses. Real estate securities, like the NP Skyloft investment at issue in the pending arbitration against Pazzalia, often present particular suitability concerns because they typically involve:

• Limited liquidity: Investors may be unable to access their capital for extended periods
• Complex structures: These investments can be difficult for average investors to fully understand
• Higher risk profiles: Many real estate securities involve significant speculative elements
• Substantial fees and costs: These investments often carry high commission structures that benefit advisors

The pending arbitration claim against Pazzalia suggests her client allegedly suffered losses of over $157,000 due to an unsuitable real estate security recommendation. This type of allegation is particularly concerning as it indicates a potential failure to prioritize client interests in favor of potentially higher-commission investment products.

Victoria Pazzalia’s Professional Background

To properly evaluate the implications of this pending complaint, it’s important to understand Pazzalia’s professional history and qualifications:

Current Employment

Pazzalia is currently registered with:

• Madison Avenue Securities, LLC (CRD# 23224) since January 3, 2025 as a Registered Sales Assistant
• McAdam LLC (CRD# 170914) since October 3, 2014 as an Investment Adviser Representative

Previous Employment

Her previous employment includes:

• Purshe Kaplan Sterling Investments (CRD# 35747): October 2014 – December 2024
• Voya Financial Advisors, Inc. (CRD# 2882): June 2011 – October 2014

Industry Qualifications

Pazzalia has passed several securities industry examinations:

• Securities Industry Essentials Examination (SIE)
• General Securities Representative Examination (Series 7)
• Investment Company Products/Variable Contracts Representative Examination (Series 6)
• Uniform Investment Adviser Law Examination (Series 65)
• Uniform Securities Agent State Law Examination (Series 63)

Notably, she has not obtained any Principal/Supervisory qualifications despite being in the industry since 2011.

Recent Employment Changes and Timing Concerns

The timing of Pazzalia’s employment changes raises additional concerns. She joined Madison Avenue Securities in January 2025, very shortly before the customer dispute was filed in February 2025. This close timing between changing firms and the emergence of customer allegations is a pattern that sometimes occurs when advisors anticipate disciplinary issues at their previous firm.

Investors should be aware that when financial advisors switch firms frequently or immediately before customer complaints surface, it may indicate an attempt to stay ahead of regulatory issues or customer dissatisfaction. While there can be legitimate reasons for changing employment, the proximity to the complaint filing merits consideration.

The Real Estate Security at Issue: NP Skyloft

The pending arbitration centers on an investment called “NP Skyloft,” a real estate security. While the BrokerCheck report doesn’t provide specific details about this investment, real estate securities of this nature typically involve:

1. Private placements in commercial real estate developments
2. Limited partnerships or other complex ownership structures
3. Restricted liquidity with lengthy holding periods
4. Higher-than-average commissions for the selling broker

These characteristics make such investments suitable only for specific investor profiles – typically accredited investors with substantial net worth, sophisticated investment knowledge, and the ability to lock up capital for extended periods without causing financial hardship.

The significant alleged damages ($157,747.01) suggest this may have represented a substantial portion of the client’s portfolio, raising questions about portfolio concentration and diversification in Pazzalia’s recommendations.

Red Flags for Victoria Pazzalia’s Current Clients

If you are currently working with Victoria Pazzalia at Madison Avenue Securities or McAdam LLC, several aspects of her background warrant careful consideration:

1. Significant Pending Customer Dispute

The $157,747.01 arbitration claim alleging unsuitability represents a substantial complaint. While the allegations remain unproven pending arbitration resolution, the claim size indicates a serious potential breach of financial advisor standards.

2. Multiple Business Activities

According to FINRA records, Pazzalia engages in several business activities beyond her registered roles:

• McAdam LLC: 40 hours weekly as a financial advisor
• McAdam Institutional Brokerage: Insurance sales including fixed annuities
• Summer 1 LLC: Works as an extra on a television show (non-investment related)

The significant time devoted to multiple business activities (particularly 40 hours weekly at McAdam LLC) raises questions about capacity and attention to client needs at her new firm, Madison Avenue Securities.

3. Limited State Registrations

Despite being in the industry since 2011, Pazzalia is currently registered in only one U.S. state (Virginia), which is unusually limited for an established advisor. This restricted registration status could indicate regulatory issues or specialized practice limitations.

Steps for Investors Who Worked with Victoria Pazzalia

If you invested with Victoria Pazzalia, particularly at Purshe Kaplan Sterling Investments between 2014 and 2024, there are several important steps you should consider taking:

1. Review Your Investment Portfolio

Carefully examine any real estate securities or alternative investments recommended by Pazzalia, particularly:

• Private placements in real estate projects
• Limited partnership interests
• Non-traded REITs
• Any investments similar to the “NP Skyloft” referenced in the pending arbitration

Look for investments that may have experienced unexpected losses, lacked liquidity when promised, or didn’t align with your stated investment objectives and risk tolerance.

2. Obtain and Review Your Account Documentation

Request copies of important account documents from Purshe Kaplan Sterling Investments, including:

• New account forms detailing your investment objectives and risk tolerance
• Investment purchase confirmations and disclosures
• Account statements showing performance history
• Any suitability documentation or financial plans Pazzalia prepared

These documents will be essential for evaluating whether recommendations made to you were suitable given your documented investment profile.

3. Assess Suitability of Recommendations

Consider whether the investments recommended by Pazzalia were appropriate for your circumstances at the time they were recommended:

• Were the risks fully explained to you?
• Did the investments align with your stated financial goals?
• Were you informed about liquidity limitations?
• Did the concentration of these investments in your portfolio make sense given your overall financial picture?

4. Consult with a Securities Attorney

If you identify concerns about unsuitable investment recommendations, a securities attorney can help evaluate potential recovery options, which may include:

• FINRA arbitration claims
• Direct negotiation with Purshe Kaplan Sterling Investments
• Joining other affected investors in group claims
• Other regulatory complaint processes

Understanding Legal Remedies for Unsuitable Investment Recommendations

If you were harmed by potentially unsuitable investment recommendations from Victoria Pazzalia, several legal remedies may be available:

FINRA Arbitration

Most investment accounts include mandatory arbitration agreements requiring disputes to be resolved through FINRA’s arbitration process rather than court litigation. FINRA arbitration provides:

• A faster resolution than traditional court cases
• Specialized arbitrators familiar with securities laws
• Lower costs than typical civil litigation
• The potential for recovery of damages, costs, and in some cases, attorneys’ fees

The pending arbitration against Pazzalia is following this FINRA arbitration process.

Potential Recovery

Investors who suffered losses due to unsuitable recommendations may be entitled to recover:

• Direct investment losses
• Lost opportunity costs
• Interest on investment losses
• Costs and fees associated with the improper transactions
• In egregious cases, punitive damages

Time Limitations

Investors should be aware that strict time limitations apply to investment-related claims:

• FINRA arbitration claims typically must be filed within 6 years of the events giving rise to the dispute
• State securities law claims often have shorter statutes of limitation (commonly 2-3 years)
• The clock on these time limitations may have started when the investments were purchased, not when losses were discovered

Given these time constraints, prompt evaluation of potential claims is essential.

The Significance of the Pending FINRA Arbitration

The pending FINRA arbitration against Victoria Pazzalia (Case #25-00347) is significant for several reasons:

1. It signals regulatory scrutiny of Pazzalia’s investment recommendations
2. The substantial damages sought ($157,747.01) indicate potentially serious financial harm
3. If resolved against Pazzalia, it could lead to additional regulatory consequences
4. It raises questions about supervision practices at Purshe Kaplan Sterling Investments

Current and former clients should monitor the outcome of this arbitration, as its resolution may impact the viability and approach of similar claims by other investors.

Purshe Kaplan Sterling Investments’ Supervisory Responsibilities

Brokerage firms have a duty to supervise their registered representatives. In the context of Victoria Pazzalia’s case, Purshe Kaplan Sterling Investments had an obligation to:

1. Ensure all recommended investments were suitable for clients
2. Monitor for red flags in sales patterns or client complaints
3. Conduct due diligence on products offered through their platform
4. Maintain adequate supervisory systems and procedures

The pending arbitration against Pazzalia indirectly raises questions about Purshe Kaplan’s fulfillment of these supervisory obligations. If the firm failed to adequately supervise her activities, it could bear legal responsibility for resulting client losses under a failure-to-supervise theory.

McAdam LLC and Madison Avenue Securities Considerations

Pazzalia’s current employers, McAdam LLC and Madison Avenue Securities, also have important supervisory responsibilities going forward. Investors working with Pazzalia through these firms should:

1. Ask detailed questions about how investment recommendations align with their specific financial situation
2. Request written explanations of why specific investments are suitable for their circumstances
3. Ensure their risk tolerance and investment objectives are accurately documented
4. Carefully review all disclosures regarding fees, commissions, and potential conflicts of interest

Protecting Yourself From Unsuitable Investment Recommendations

Whether you work with Victoria Pazzalia or any financial advisor, these protective steps can help you avoid unsuitable investment recommendations:

1. Understand Your Investments

Never invest in products you don’t understand. Ask detailed questions about:

• How the investment makes money
• Specific risks involved
• Liquidity provisions and restrictions
• All associated fees and expenses

2. Know Your Advisor’s Background

Use FINRA BrokerCheck (brokercheck.finra.org) to research any financial professional before establishing a relationship. Look specifically for:

• Regulatory actions
• Customer disputes
• Employment separations after allegations
• Bankruptcy filings

3. Document Everything

Maintain records of:

• Conversations about investment recommendations
• Account statements and confirmations
• Marketing materials and presentations
• Emails and other communications

4. Be Wary of Certain Investment Types

Exercise particular caution with investments that typically present higher suitability concerns:

• Private placements
• Non-traded REITs
• Limited partnerships
• Complex structured products
• Any investments with limited liquidity

Taking Action to Protect Your Financial Interests

The pending arbitration against Victoria Thu-Van Pazzalia alleging unsuitable investment recommendations serves as an important reminder of the need for investor vigilance. If you invested with Pazzalia, particularly in real estate securities or similar alternative investments, a careful review of those recommendations is warranted.

Our experienced investment fraud attorneys have successfully represented numerous investors who suffered losses due to unsuitable investment recommendations. We understand the complex legal and regulatory framework governing these cases and can help you pursue the recovery you deserve.

With proper legal representation, investors who suffered losses due to potentially unsuitable recommendations can navigate the FINRA arbitration process effectively and pursue fair compensation for their damages.

Don’t wait to explore your legal options. The time to act is now, while evidence remains available and time limitations have not expired.

Call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.