National Investment Fraud lawyers KlaymanToskes investigates Joseph Stone Capital, LLC after FINRA censured and ordered the firm to pay restitution of approximately $825,000 to customers whose accounts were excessively traded. In related settlements, FINRA suspended eight representatives, requiring them to pay, collectively, an additional $211,000 in restitution to impacted customers.
According to the Letter of Acceptance, Waiver, and Consent (“AWC”) entered into on September 8th, 2022 by Joseph Stone Capital, FINRA’s Department of Enforcement found that from January 2015 to June 2020, the firm failed to implement a supervisory system reasonably designed to comply with FINRA’s rules relating to suitability and excessive trading. The AWC explains the firm failed to identify numerous red flags of unsuitable and excessive trading in 25 customer accounts. The trades in these accounts allegedly resulted in “annualized turnover rates ranging from 6 to 57 and generated cost-to-equity ratios ranging from 21 percent to 96 percent, making it unlikely that the accounts would reach their break-even points or earn a positive return.”
If you suffered investment losses with Joseph Stone Capital, LLC, contact attorney Lawrence L. Klayman at 888-997-9956 or lklayman@klaymantoskes.com to discuss your recovery options.
According to Joseph Stone’s Brokercheck Report, the firm is currently the subject of four regulatory disclosures and three arbitration events:
Two of the top three executives at Joseph Stone Capital have been the subject of notable FINRA disclosures according to Brokercheck. CEO Damian Maggio (CRD# 2864247) has one pending and one settled customer dispute against him, with allegations of failure to supervise and breaching the securities act of 1933, respectively. CCO James Vincent Pardy (CRD# 2900751) has six disclosures according to Brokercheck. His disclosures include a customer dispute ruled in favor of the investor with an award amount of $175,000, a pending customer dispute for failure to supervise, a regulatory event with sanctions of a month-long suspension and $15,000 fine, and two unpaid tax liens.
Additionally, this Firm is currently subject to FINRA Rule 3170 (Taping Rule) which requires the firm to install taping systems to record all telephone conversations between their registered representatives and existing and potential customers. FINRA states that the rule “applies to member firms with a significant number of registered persons that previously worked for firms that have been expelled from the industry or have had their registrations revoked for inappropriate sales practices.”
KlaymanToskes encourages investors who did business with Joseph Stone Capital, LLC, and/or any of the brokers listed above to review their portfolios for signs of broker misconduct and/or investment losses. Contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss your potential case.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered more than $250 million for investors in FINRA arbitrations and over $350 million in other securities litigation matters for its clients. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com