Joseph Stone Capital L.L.C. (“Joseph Stone Capital”) (CRD#159744) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Joseph Stone Capital, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Joseph Stone Capital, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Joseph Stone Capital?
If you’ve lost money caused by Joseph Stone Capital and/or its employees’ misconduct then the answer is, YES, you can sue Joseph Stone Capital, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Joseph Stone Capital in FINRA arbitration proceedings but WIN that arbitration. The easiest way to know if you have a viable case against Joseph Stone Capital is to call Attorney Pearce at our office at 800-732-2889.
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
What is Joseph Stone Capital?
Joseph Stone Capital (CRD#159744) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Joseph Stone Capital is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Joseph Stone Capital Has Many Different Regulatory Problems
Joseph Stone Capital’s rapid growth has not been without consequences. There have been approximately 4 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations. In addition, there have been customer complaints filed against Joseph Stone Capital for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Joseph Stone Capital is a repeat offender: there are over 4 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Joseph Stone Capital Has Faced Over the Years
Joseph Stone Capital has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Fines Joseph Stone Capital for Failure to Supervise Excessive Trading in Customer Accounts
Brief Overview: Without admitting or denying the findings, Joseph Stone Capital consented to the sanctions and to the entry of FINRA findings that it failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the suitability requirements of FINRA rule 2111 regarding excessive trading. FINRA stated that the firm’s written supervisory procedures did not provide reasonable guidance about how to identify accounts that were being excessively traded. As a result, the firm failed on numerous occasions to identify accounts that had red flags of excessive trading, including accounts with cost-to-equity ratios greater than 20 percent. In total, the trading caused the customers to pay more than $1,000,000 in commissions, fees, and margin interest. As a result, the firm was censured and ordered to pay restitution exceeding $800,000.
New Hampshire Bureau of Securities Regulation Fines Joseph Stone Capital for Failure to Supervise Agent on Heightened Supervision
Brief Overview: The New Hampshire Bureau of Securities Regulation initiated an investigation into Joseph Stone Capital that revealed the firm failed to supervise and follow their own written procedures regarding an agent who was already on heightened supervision for previous regulatory actions. Because of such failure, the agent caused losses of at least $175,000 in an elderly and ill customer’s account while making high commissions for himself and Joseph Stone Capital. As a result, the firm was fined $305,000. The firm also paid $175,000 in disgorgement.
Commonwealth of Massachusetts Fines Joseph Stone Capital for Failure to Register Firm Principals
Brief Overview: The Commonwealth of Massachusetts initiated an investigation into Joseph Stone Capital that revealed since inception the firm failed to register two firm principals in charge of supervising registered representatives who were registered and conducting business in Massachusetts. In response, the firm stated it was unaware that individuals were acting as supervising principals and who were not transacting any securities business in Massachusetts were required to be registered. As a result, the firm was fined.
Montana Fines Joseph Stone Capital for Failure to Supervise Fraudulent and Unethical Practices by Salespeople
Brief Overview: The State of Montana initiated an investigation into Joseph Stone Capital that revealed the firm failed to supervise and knowingly provided substantial assistance to salespeople conducting fraudulent and unethical sales and manipulative practices. The sanctions against the firm included a monetary fine and restitution.
Joseph Stone Capital Customer Complaints
There have been numerous customer complaints filed against Joseph Stone Capital stockbrokers and investment advisors over the years. We have launched a number of investigations of current and former Joseph Stone Capital advisors:
- Indra Ramsahai of Joseph Stone Capital
- Troy Orlando of Joseph Stone Capital
- Garrett Gaylor Formerly With Joseph Stone Capital
- Imtiaz Khan of Joseph Stone Capital
- Louis Ambrosio of Joseph Stone Capital
- Sebastian Wyczawski of Joseph Stone Capital
- Steven Luftschein formerly with Joseph Stone Capital L.L.C.
- Ibrahim Kurtulus of Joseph Stone Capital L.L.C
- Damian Maggio of Joseph Stone Capital L.L.C
If you have lost money investing with any of these Joseph Stone Capital advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Joseph Stone Capital Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of many franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Joseph Stone Capital Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Joseph Stone Capital is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Joseph Stone Capital without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Investment Losses? We Can Help
Discuss your legal options with an attorney at The Law Offices of Robert Wayne Pearce, P.A.
or, give us a ring at (800) 732-2889.
Consult With An Attorney Who Recovers Investment Losses Caused By Joseph Stone Capital Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Joseph Stone Capital cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
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