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Leonid Yurovsky of Joseph Stone Capital Suspended by FINRA for Excessive and Unsuitable Trading

January 13, 2023

Investment Losses with Leonid Yurovsky? KlaymanToskes Has Recovery Options

National investment fraud lawyers KlaymanToskes is investigating Leonid Yurovsky (CRD# 4554905) following his suspension from the securities industry for excessive and unsuitable trading by FINRA’s Department of Enforcement. According to FINRA’s Brokercheck Report, Yurovsky has been registered with Joseph Stone Capital since 2016 in Mineola, NY.

I Lost Money With Leonid Yurovsky, What Can I Do?

Customers of Leonid Yurovsky that suffered investment losses are encouraged to contact securities attorney Lawrence L. Klayman immediately to learn about recovery options at (888) 997-9956 or lklayman@klaymantoskes.com.

Consultations are free and cases are taken on a contingency basis, meaning we do not collect attorney’s fees unless we are able to obtain a financial recovery for you.

Leonid Yurovsky Suspended for Excessive and Unsuitable Trading

According to a Letter of Acceptance, Waiver, and Consent (“AWC”) entered into by Yurovsky and FINRA’s Department of Enforcement on December 27th, 2022, from June 2016 through November 2019, Yurovsky excessively and unsuitably traded in two customer accounts. The AWC concluded that Yurovsky’s misconduct violated FINRA Rule 2111(Suitability) and Rule 2010 (Principles of Trade), resulting in sanctions of a five-month suspension in all capacities and restitution to be paid in the sum of $10,648.61 plus interest.

The AWC explains that from 2016 to 2019, Yurovsky recommended that “Customer A, a farmer with limited investment experience, place 252 trades in his account” and that during that time period, Customer A had an average monthly equity of $158,600 in his account. Incredibly, the recommended trades resulted in approximately $165,000 in commissions paid to Yurkovsky, as well as other trade costs. These recommendations resulted in an annualized cost-to-equity ratio of approximately 30 percent in Customer A’s account. In other words, “Customer A’s account would have had to grow by more than 30 percent annually just to break even.”

In the second example discussed in the AWC, Yurovsky recommended that “Customer B, a senior investor, place 41 trades in his account between July and December 2016.” Customer B was also recommended to sell several securities shortly after buying them, generating substantial commission for Yurovsky.

In one circumstance, “Yurovsky recommended that Customer B purchase 395 shares of a technology company on October 28, 2016 for $59.75 per share, only to sell 145 shares ten days later for $60.40 per share. These transactions required Customer B to pay almost $700 in commissions and trading fees to generate less than $95.00 in proceeds.”

The transactions recommended by Yurovsky in Customer A’s and Customer B’s accounts ultimately resulted in the investors paying approximately $175,600 in commissions and other charges. These charges were found to be excessive and unsuitable.

Leonid Yurovsky’s Disciplinary History with Regulators and Customers

On December 16th, 2014, the state of Arkansas entered into a regulatory complaint against Leonid Yurovsky, alleging that he engaged in excessive trading and unsuitable securities sales in the accounts of Arkansas residents. The customers sought conservative investments and told Yurovsky they could not afford to lose value in the account, yet their account paperwork had been marked as “speculative” in character and “aggressive” in risk tolerance.

Additionally, Yurovsky’s registration in the state of Arkansas had lapsed at the time that he opened the accounts. The accounts lost value while being charged over $100,000 in commissions and fees. As a result of this misconduct, the state of Arkansas ordered sanctions of restitution to be paid in the amount of $55,000.

In April, 2013, a customer filed a complaint against Yurovsky alleging unsuitability and misrepresentation of investments in common and preferred stock. The complaint was settled in favor of the investor for $55,000.

Investors that suffered losses with Leonid Yurovsky or Joseph Stone Capital are encouraged to contact Lawrence L. Klayman, Esq., at 888-997-9956, or lklayman@klaymantoskes.com to discuss recovery options.

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. 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.

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com