May 12, 2021
Joseph Ambrosole, a general securities representative associated with Joseph Stone Capital, LLC (JSC) in New York City recently consented to sanctions imposed by the Financial Industry Regulatory Authority (FINRA) Department of Enforcement to resolve allegations of unsuitably trading the accounts of two customers. Ambrosole has been associated with JSC since November 2017.
According to the Letter of Acceptance, Waiver, and Consent (AWC) approved by FINRA on April 7, 2021, Ambrosole violated FINRA Rules 2111 and 2010 by unsuitably trading in two elderly customers’ accounts between December 2017 and June 2020. Ambrosole executed 157 trades in one customer’s account, who had an average monthly equity of approximately $300,000, causing this customer to pay more than $126,000 in commissions and other trading costs. At this time, the customer also began showing progressive neurological cognitive impairments.
The second account affected by Ambrosole’s alleged unsuitable recommendations and trading was held by a senior husband and wife who had little investing experience. Their joint account had an average monthly equity of approximately $70,000. Between July 2019 and June 2020, Ambrosole executed 40 trades in this account, causing the couple to incur over $20,400 in commissions and other trading costs. This couple ultimately paid nearly $150,000 in commissions and trading costs during the relevant period between December 2017 and June 2020.
Ambrosole consented to a six-month suspension from associating with any FINRA member firm in any capacity, a $5,000 fine, and restitution totaling $147,031.50. His FINRA BrokerCheck report shows two settled customer disputes in 2018 that alleged churning, unsuitability, overconcentration, common law fraud, breach of fiduciary duty, gross negligence, and breach of contract.
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