Brian James Pavelko

(CRD #6347352, McAdoo, Pennsylvania)

July 10, 2026 – Pavelko appealed an OHO decision to the NAC in which he was barred from association with any FINRA member in all capacities for failing to provide certain information and documents requested by FINRA. While investigating Pavelko’s involvement in private placement offerings, FINRA received copies of Pavelko’s state and federal tax returns for the years 2020 and 2021 and bank account statements. The information in the tax returns and bank account statements led FINRA to open a new investigation because those documents showed that he had received pandemic-related unemployment compensation from the New Jersey Department of Labor, Division of Unemployment Insurance (NJDUI) while he was working at and receiving compensation from a member firm and while also receiving compensation from an outside business activity (OBA).

Pavelko later confirmed that he applied for Pandemic Unemployment Assistance (PUA) from NJDUI, and NJDUI approved his application. Pavelko received approximately $37,000 in PUA benefits between May 2020 and September 2021. During the same period, Pavelko received compensation totaling approximately $54,000 in connection with his work for the firm and the OBA. The information from Pavelko’s tax returns and bank statements raised the question of what he had said to the New Jersey authorities about his securities industry work and compensation in his application for pandemic-related unemployment compensation and in any subsequent submissions related to his PUA benefits. FINRA wanted to determine whether he had made material misrepresentations or omissions in his application for pandemic-related unemployment compensation about his employment with, and income from, the firm and OBA. FINRA also became concerned that Pavelko may have provided ongoing misrepresentations about his securities industry compensation when he regularly checked-in with the NJDUI. If Pavelko did make such misstatements about his securities business and compensation for the purpose of obtaining pandemic-related unemployment compensation that he may not have been entitled to receive, FINRA considered that such misconduct would be a violation of its ethical conduct rule.

Pavelko later gave sworn testimony in an on-the-record interview (“OTR”) about his application for pandemic-related unemployment compensation and his efforts to obtain a copy of his application to provide to FINRA. The investigation expanded to address whether he gave false testimony at his OTR. FINRA considered false testimony to be a violation of its ethical conduct rule. Both the inquiry into what Pavelko told the New Jersey authorities about his securities business and compensation and the inquiry into whether he gave false testimony were focused on Pavelko’s potential violation of FINRA Rule 2010 and his trustworthiness to be in an industry that relies on the honesty of its participants.

The sanction is not in effect pending review. (FINRA Case #2020066757804)

If you have suffered losses as a result of Brian James Pavelko’s act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Brian James Pavelko The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-330-6707 or email Matthew Schwartz directly at mschwartz@tslfirm.com.