Customers Who Are The Victims of Churning May Be Able To Recover Damages
The Financial Industry Regulatory Authority (FINRA) has ordered Joseph Stone Capital and a number of its registered representatives to pay $1M in restitution for allegedly excessively trading in customers’ accounts. This includes $825K in restitution from the broker-dealers and $211K from eight current and ex-Joseph Stone brokers, all of whom have been suspended.
Three Joseph Stone supervisors were also suspended for allegedly not doing enough to identify or address red flags warning of this purported broker misconduct. Two other Joseph Stone representatives were barred for not responding to FINRA’s requests for more information in its investigation.