Arizona Commission Revoked Scottsdale Adviser License
The state regulator stripped Paul Marascalco of his investment adviser license following a felony conviction.
Updated on Oct. 14, 2026 in Financial Crime
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The Arizona Corporation Commission has revoked the investment adviser license of Scottsdale resident Paul Marascalco. The regulatory action follows findings that Marascalco failed to disclose a prior felony conviction in mandatory filings.
Why it matters
The decision underscores the importance of transparency in financial services and the strict regulatory requirements governing professional licensure in Arizona. By failing to disclose his criminal history, the adviser misled both the commission and his clients about his qualifications.
The commission ordered Paul Marascalco to pay a $2,500 fine following his violation of the Investment Management Act. The regulator also noted that Marascalco served a 12-month jail sentence after pleading guilty to a felony.
The players
Paul Marascalco
He is the former owner of Paul Marascalco Registered Investment Advisor who faced regulatory action for failing to disclose a felony conviction.
Arizona Corporation Commission
This state regulatory body is responsible for overseeing investment advisers and enforcing state compliance standards within Arizona.
The details
Marascalco, who operated his firm since 2015, concealed his legal issues from clients by claiming he was taking a personal leave of absence. He further misled investors by sending an announcement suggesting another adviser would manage their portfolios during his absence.
Timeline
Paul Marascalco founded his investment advisory firm in 2015.
Marascalco pleaded guilty to a felony in September 2021.
The adviser failed to disclose his conviction in regulatory filings in 2025.
The adviser failed to disclose his conviction in regulatory filings in 2026.
Legal Context
The commission's enforcement action highlights how the Investment Management Act serves as a safeguard to ensure professional integrity within the financial sector. This ruling follows a pattern of state regulators increasing oversight to prevent licensed professionals from hiding criminal backgrounds.
Former clients of the firm who were misled by claims of a sabbatical should review their account statements for any irregularities. Residents can verify the status of financial advisers through the state commission's official registration database.
The takeaway
Investors should always independently verify the background and disciplinary history of their financial advisers through state regulatory portals. Do not rely solely on communications from an adviser regarding their availability or changes in firm management.
Further reading
Learn more about local regulatory oversight in Scottsdale Financial Crime.
Source note: This article includes information reported by KTAR.
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