National investment fraud lawyers KlaymanToskes reports that former Fidelity Brokerage Services broker/investment advisor Eric James Stone (CRD# 5227654) has been permanently barred from acting as a stockbroker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”). The decision comes after the Jacksonville, Florida-based former broker refused to produce investigation-related information regarding loans he allegedly solicited and obtained from clients.
Investors that suffered losses or loaned money to Eric J. Stone may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options. Consultations are free and every case is taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Disclosure: Investors that had self-directed accounts who did not rely on the advice of a financial advisor are not eligible for our services.
On March 2nd 2023, FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Eric James Stone, disclosing that Stone consented to sanctions of a permanent bar from associating with any FINRA member in all capacities.
According to the AWC, the matter originated from FINRA’s examination of a Form U5 (Uniform Termination Notice for Securities Industry Registration) filed by Fidelity Brokerage Services naming Stone, dated June 29, 2021. The Form U5 disclosed that Stone had been discharged due to concerns related to loans he solicited and obtained from clients.
Eric James Stone (CRD# 5227654)
According to FINRA BrokerCheck, Stone was previously registered with Fidelity Brokerage Services from 2008 to 2021 in Jacksonville, FL. Stone held 13 years of securities industry experience.
An additional disclosure on Stone’s BrokerCheck Report discloses an outstanding $33,975 tax lien with the Internal Revenue Service (“IRS”) in Florida’s St. Johns County Court in St. Augustine, FL.
On December 16, 2021, FINRA staff sent a request to Stone (pursuant to FINRA Rule 8210) for the production of information and documents related to its investigation of Stone’s alleged misconduct. Stone did not respond by FINRA’s due date of January 7, 2022, however, on February 21, 2022 Stone provided a statement that included some but not all of the requested information.
On November 21, 2022, FINRA sent Stone a second request for the production of the outstanding information and documents originally asked for in December of the previous year. Stone allegedly provided some additional information but “failed to provide substantially all of the information or any of the documents sought in the December Request by the due date of December 5, 2022, and those materials remain outstanding.”
On January 3, 2023, FINRA staff sent a third letter to Stone requesting that he appear for on-the-record testimony on January 18, 2023. Stone failed to appear for the testimony and on January 19, 2023, FINRA sent Stone a second request to appear for on-the record testimony on January 26th. The AWC alleges that “at Stone’s request, FINRA adjourned the on-the-record testimony to February 2, 2023.” Yet, Stone failed to appear for testimony on that date.
By refusing to produce the requested information and documents, and by failing to appear for on-the-record testimony, as requested pursuant to FINRA Rule 8210, Stone violated FINRA Rules 8210 and 2010.
Under FINRA Rule 8210, all brokerage firms and registered financial professionals are required to provide information, documents, and testimony upon regulators’ requests.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires brokerage firms and their registered representatives to “observe high standards of commercial honor and just and equitable principles of trade.”
Former customers of Eric James Stone that loaned him money or who have experienced significant investment losses are encouraged to contact securities attorney Lawrence L. Klayman, Esq. at 1-888-997-9956 or lklayman@klaymantoskes.com to discuss their recovery options.
KlaymanToskes 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 also has the experience and resources dedicated to prosecuting your case. The firm has recovered over $250 million for investors in FINRA arbitration cases alone.
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.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com