Vienna, Virginia financial advisor Victoria Pazzalia (CRD# 5920806) is facing a recent investor complaint alleging she recommended an unsuitable investment. According to FINRA records, Pazzalia is registered as both a broker with Madison Avenue Securities and an investment advisor with McAdam Financial.
The complaint, filed in February 2025, claims that while Pazzalia was a representative of Purshe Kaplan Sterling, she recommended an inappropriate investment in NP Skyloft. The pending complaint alleges damages totaling $157,747.01.
As an experienced financial advisor, Pazzalia should have thoroughly vetted the suitability of the NP Skyloft investment for her client’s specific situation and goals. Recommending an unsuitable investment product violates FINRA rules and can lead to disciplinary action, in addition to potential legal consequences if the client suffers investment losses as a result.
While the details of the NP Skyloft investment are not provided, this case serves as a stark reminder for investors to carefully scrutinize any investment recommendations from their financial advisors. Even seasoned professionals can steer clients wrong, intentionally or not. It’s critical to understand the risks and suitability of an investment product before committing your hard-earned money.
Financial Advisor’s Background and Past Complaints
Victoria Pazzalia’s advisor profile on McAdam Financial’s website touts her “proven track record of guiding clients through complex financial situations” and ability to “craft personalized solutions” to meet clients’ needs. It highlights her economics expertise to “navigate the financial landscape” and psychology background to “tailor strategies to your individual circumstances.”
However, a closer look at Pazzalia’s background reveals this is not her first brush with a client dispute. FINRA records show she has 13 years of experience in the securities industry and is licensed in Virginia. Prior to her current positions with Madison Avenue Securities and McAdam Financial, she was registered with Purshe Kaplan Sterling Investments in Vienna, VA from 2014-2024 and Voya Financial Advisors in Tysons Corner, VA from 2011-2014.
While no details are provided about Pazzalia’s previous complaint, having multiple disputes on record is concerning. It suggests a potential pattern of recommending questionable investments or strategies. Whether due to lack of due diligence, misunderstanding a product’s risks, or acting in her own interests, it’s clear she has fallen short in upholding her fiduciary duty to some clients.
FINRA Rule Violation Explained
FINRA Rule 2111 requires financial advisors to have a “reasonable basis” for believing an investment recommendation is suitable for a particular customer, based on that client’s financial situation and needs. The rule has three main obligations:
- Reasonable-basis suitability: A broker must have done due diligence to understand the product’s risks and rewards
- Customer-specific suitability: The broker must make a determination that the product is a good fit for the client’s specific investment profile
- Quantitative suitability: The broker must have a reasonable basis to believe the number of recommended transactions is not excessive for the client
By allegedly recommending an unsuitable investment, Pazzalia appears to have violated her customer-specific suitability obligations under FINRA Rule 2111. The rule is designed to protect investors from being steered into overly risky, complex or ill-fitting investments that don’t align with their best interests.
Consequences and Lessons Learned
For financial advisors, recommending unsuitable investments can lead to serious consequences like:
- Disciplinary action from FINRA, including suspensions, fines and permanent bans from the securities industry in egregious cases
- Legal liability and the obligation to pay damages if a client files and wins an arbitration case or lawsuit
- Reputational damage from client complaints that can haunt an advisor throughout their career and hurt their book of business
For investors, this case is an important reminder not to blindly trust your financial advisor, even if they seem experienced and well-credentialed. Always ask questions, understand what you’re investing in, and make sure the product aligns with your specific financial goals and risk tolerance.
As the famous saying goes, “trust, but verify.” Don’t be afraid to get a second opinion on investment recommendations. And if you suffer losses due to advisor misconduct, know that you have recourse options, like filing a FINRA arbitration claim or lawsuit to try to recover damages.
“It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” – Warren Buffett
Financial Fact: Studies estimate that 1 in 12 financial advisors have a history of professional misconduct or fraud.
