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.
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.
According to BrokerCheck, Eugene McAdams had two customer disputes, including one in 2018. The 2018 customer dispute contained the following allegations:
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.
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:
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.
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.
Lawrence L. Klayman, Esq. (561) 542-5131