2 Stockbrokers Barred Over Allleged Excesses

Federal regulators permanently barred two San Fernando Valley stockbrokers from associating with any investment firm after alleging that the men excessively traded investments for several Southern California communities.

William E. Parodi Sr., 47, of Woodland Hills and his brother, Frederick W. Parodi, 35, of Canoga Park, settled with the Securities and Exchange Commission without admitting or denying the agency’s charges. The Parodis did not return telephone calls requesting comment on the settlement.

The SEC alleged that in 1986-87, the brokers generated high commissions, a total of at least $1.4 million, by “churning” investments they were making for such cities as Rancho Palos Verdes, Chino, Imperial Beach, LaVerne, Lawndale, Palmdale and San Marino. At the time, the Parodis worked for the brokerages E.F. Hutton (now part of Shearson Lehman Hutton) and First Investment Securities.

In one case, Frederick Parodi handled an average $195,000 investment by Imperial Beach during a four-month period in which he generated $104,000 in commissions for himself and his firm, the SEC said. Imperial Beach, meanwhile, lost its initial investment plus an additional $10,120, the agency said.