National investment fraud lawyers KlaymanToskes reports DEREK JOHN REHILL (CRD# 2935032) has been suspended by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker at any FINRA-regulated brokerage firm in all capacities.
While registered with Joseph Stone Capital, Derek Rehill allegedly inaccurately reported customers’ investment objectives and risk tolerances to reflect that customers had a speculative investment objective when the customers were conservative.
According to FINRA BrokerCheck, Derek John Rehill voluntarily left Joseph Stone Capital in 2021. He is currently registered with VCS Venture Securities in Mineola, NY.
Investors that spoke with Derek Rehill and/or suffered losses at Joseph Stone Capital may have recovery options. Contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Derek John Rehill entered into a regulatory agreement known as a letter of Acceptance, Waiver, and Consent (“AWC”) with FINRA’s Department of Enforcement on March 20th, 2023. The broker will remain suspended in all capacities for two months from April 17th to June 16th, 2023. The AWC states monetary sanctions were not imposed due to Rehill’s inability to pay.
The AWC states that Rehill was responsible for calling customers whose Joseph Stone accounts had been identified as “actively traded” to confirm the investment objective and risk tolerance stated on the customer’s account form.
According to the Department’s findings, on at least four occasions from 2019 to 2020, Rehill completed customer contact forms that inaccurately stated the customers’ investment objectives and risk tolerances. During three of these alleged incidents, Rehill completed customer contact forms reflecting that customers had confirmed they had a speculative investment objective when the customers did not.
In one example stated by the AWC, a customer reportedly told Rehill that he wanted to “do more of a long-term thing than keep buying and selling so much.” In another circumstance, Rehill completed a customer contact form stating that the customer had confirmed he had a speculative risk tolerance. This customer alleged Rehill had not asked him any questions about his risk tolerance at all.
In September 2022, FINRA ordered Joseph Stone Capital to pay $1 million in restitution for excessive trading in customer accounts and for the firm’s failure to implement a supervisory system reasonably designed to comply with FINRA’s rules relating to suitability.
Historically, excessive trading has been linked to conflicts of interest. KlaymanToskes believes that the main reason financial advisors excessively trade or “churn” accounts is to line their pockets by generating higher commissions.
FINRA-regulated brokers and financial advisors have a responsibility to comply with the regulator’s rules and securities laws. Investors who suffered losses at the hands of their brokerage firm may file a FINRA arbitration claim for securities violations such as unsuitable investment advice, excessive trading (“churning”), financial advisor’s/firm’s breach of fiduciary duty, conflicts of interest, unauthorized trading, and/or negligence, among others.
Former and current customers of Derek John Rehill at VCS Venture Securities and/or Joseph Stone Capital who have experienced significant investment losses are encouraged to contact attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 or lklayman@klaymantoskes.com for a free and confidential consultation.
Our firm offers legal services on a contingency fee basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com