Sounds to me like you got a bad scope. I have an LRS-1 and the paralax/focus adjustment is FIRM and the reticle does NOT move. Something is loose inside the scope. Send it back and get another one. My firest LRS-1 had a problem with a broken/non-functioning windage adjustment.
The LRS-1 is NO Night Force scope BUT for the money spent it IS a VERY GOOD to EXCELLENT scope in my opinion.
If you decide to exchange the LRS-1 for another, I strongly recommend that you get the low mounts for it. The HIGH mounts that come with the LRS-1 scope are STUPID hight and even after I replaced them with the Millet Low 35mm rings, I can still stand to lower my scope another 3/16 of an inch.
Here is my scope mounted with the high 35mm rings. The low rings I replaced them with cut about half the height but could still be lower.
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