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EUGENE MCADAMS JOSEPH STONE INVESTOR ALERT: National Investor Fraud Law Firm KlaymanToskes Investigates Barred Broker in Light of FINRA Suitability Investigation

October 18, 2021

Eugene McAdams Joseph Stone Customer? Ex-Joseph Stone Capital, LLC Broker Barred by Securities Industry as FINRA Investigate Suitability Recommendations

National investor fraud law firm, KlaymanToskes, has commenced an investigation (“Eugene McAdams Joseph Stone Investigation”) into former Joseph Stone Capital, LLC broker Eugene Arthur McAdams in light of a disciplinary bar disclosed by FINRA. In August 2021, FINRA barred Eugene McAdams from the securities industry. The bar relates to Eugene McAdams’s refusal to appear for on-the-record (“OTR”) testimony to FINRA. The OTR testimony relates to FINRA’s investigation into the suitability of McAdam’s recommended securities transactions in customers’ accounts while registered with Joseph Stone.

Eugene McAdams Joseph Stone Investigation and August 2021 FINRA AWC

According to a FINRA Letter of Acceptance, Waiver and Consent, the financial regulator barred former Joseph Stone broker Eugene McAdams for refusing to appear for on-the-record testimony relating to its investigation. FINRA’s investigation relates to the suitability of McAdam’s recommended securities transactions in customers’ accounts while registered with Joseph Stone.

Brokerage firms and its financial advisors must only recommend suitable investments to their customers. Unsuitable investment advice is an investment recommendation that is not consistent with an investor’s investment objectives, risk tolerance and investment time horizon.

Each customer should have its own specific determination of suitability based on its particular circumstances. For these reasons the securities industry established the “know your customer” rule to govern investment recommendations.

BrokerCheck of Ex-Joseph Stone Broker Eugene McAdams

According to BrokerCheck, Eugene McAdams had two customer disputes, including one in 2018. The 2018 customer dispute contained the following allegations:

  • Excessive and Unnecessary Trading on Margin
  • Elder Abuse
  • False and Misleading Statements
  • Fraud
  • Negligent Misrepresentation
  • Breach of Fiduciary Duty

The damage amount requested was $150,000, and the dispute settled for $20,000. His BrokerCheck includes a broker comment in which he, among other things, denied all claims.

Registration History of Eugene McAdams

Eugene McAdams was registered with Joseph Stone Capital, LLC (Center Moriches, NY) from September 2015 to June 2020. His other registrations include, but are not limited to:

  • Cape Securities, Inc. (July 2012 to September 2015; Lake Grove, NY)
  • PHD Capital (June 2010 to July 2012; New York, NY)
  • Brookstone Securities, Inc. (June 2009 to June 2010; Uniondale, NY)
Lose Money Investing with Eugene McAdams (New York) at Joseph Stone?

Former customers of ex-Joseph Stone Capital, LLC broker Eugene McAdams with investment losses that exceed $100,000, and those who may have information relating to the manner in which the broker handled their accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131.

About KlaymanToskes

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. KlaymanToskes has recovered more than $220 million for investors in FINRA arbitrations. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact:

KlaymanToskes

Lawrence L. Klayman, Esq. (561) 542-5131

lklayman@klaymantoskes.com

www.klaymantoskes.com