Joseph Stone Capital Censured for Excessive Trading or Churning Accounts

MINEOLA, NEW YORK Did you lose money investing with financial advisors from Joseph Stone Capital LLC, a Mineola, New York based brokerage firm? Our firm is reviewing allegations made by FINRA against Joseph Stone Capital. According to FINRA’s investigation, Joseph Stone Capital adequately failed to establish and enforce a supervisory system designed to curtail excessive trading or churning.

FINRA alleged that between January 2015 and June 2020, Joseph Stone Capital failed to identity or address red flags of excessive trading or churning in 25 customer accounts handled by 15 different registered representatives. This led to significant losses by the investors. To settle these allegations, Joseph Stone Capital agreed to pay restitution of $825,607 to affected customers and agreed to a censure.

This is not the first time that Joseph Stone Capital has been in trouble for failing to supervise excessive trading. In 2016, the Montana Securities Commission brought a regulatory action against Joseph Stone Capital and these brokers, making various allegations. According to Montana’s complaint against Joseph Stone Capital and some of its representatives, an advisor at Joseph Stone Capital engaged in excessive trading or churning.

Joseph Stone Capital is a FINRA member and securities brokerage firm. It has an obligation to follow FINRA rules, including rules to properly supervise their advisors under FINRA Rule 3110. A failure to abide by these rules could render Joseph Stone Capital liable for investor losses.

Israels & Neuman is a securities arbitration law firm with offices in Denver, Seattle, Ann Arbor and Phoenix. We represent investors all over the country and have previously represented an investor against Joseph Stone Capital.

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If you lost money investing with Joseph Stone Capital, please Contact Us at 720-599-3505 or 206-795-5798 for a free evaluation of your case.