Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Anthony Joseph Graziano (CRD # 2862096) was recently suspended from acting in all principal capacities in the securities industry by FINRA’s Department of Enforcement after an investigation into failing to reasonably supervise a registered representative at Joseph Stone Capital L.L.C. who excessively traded a customer’s account.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Graziano or Joseph Stone Capital L.L.C.
Registration Background for Anthony Graziano
Mr. Graziano first became registered in the securities industry in 1997. He is currently registered with New York, NY based Joseph Stone Capital L.L.C. (CRD # 159744). His prior registrations include National Securities Corporation (CRD # 7569) from April 2013 to November 2013, Brookstone Securities, Inc. (CRD # 13366) from August 2011 to May 2012 and Salomon Whitney LLC (CRD # 145012) from September 2008 to August 2011.
FINRA’s Allegations Against Anthony Graziano
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 8, 2021 Mr. Graziano consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From August 2019 to June 2020, [Mr.] Graziano failed to reasonably supervise one registered representative of Joseph Stone, who excessively traded one customer’s account”;
- “From August 2019 to June 2020, Graziano was the designated principal responsible for supervising the registered representatives assigned to Joseph Stone’s branch office in Manhattan”;
- “[Mr.] Graziano’s supervisory responsibilities, as set forth in the firm’s written supervisory procedures (WSPs), included (1) reviewing the branch’s daily trade blotter and, where appropriate, “speaking with [the] broker and the client to determine whether any sales practice violations have occurred” and (2) enforcing any restrictions that another principal of Joseph Stone (Principal A) imposed on the commissions that could be charged in a customer account”;
- “First, although [Mr.] Graziano reviewed the branch’s daily trade blotter, he failed to identify red flags that a representative under his supervision (Representative A) was excessively trading the account of a 78-year-old customer (Customer 1)”;
- “Second, [Mr.] Graziano did not enforce restrictions that Principal A set on the commissions that Representative A could charge in Customer 1’s account”;
- “In all, the trades that Representative A recommended in Customer 1’s account from August 2019 to June 2020 resulted in a cost-to-equity ratio of 22 percent and caused Customer 1 to pay almost $120,000 in commissions and other trading costs”; and
- By virtue of his actions, Mr. Graziano violated FINRA Rule 3110 regarding supervision and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Suspends Anthony Graziano from All Principal Capacities in the Securities Industry
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s December 8, 2021 AWC also indicates that Mr. Graziano consented to the following sanction(s):
- A three-month suspension from association with any FINRA member in all principal capacities; and
- A fine in the amount of $5,000.00; and
- Satisfactorily completing 20 hours of continuing education within 90 days of notice of the AWC.
Anthony Graziano Has A History of Securities Industry Customer Complaints
In addition to Anthony Graziano being suspended by FINRA from all principal capacities in the securities industry regarding failure to supervise, FINRA BrokerCheck for Mr. Graziano reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On October 13, 2005 a customer initiated arbitration was filed naming Mr. Graziano as a respondent regarding alleged actions that occurred while he was associated with Gunallen Financial, Inc (CRD # 17609). The customer alleged unsuitability, churning and excessive margin and commissions. The customer further alleged damages in the amount of $80,822.00. On April 7, 2006 the arbitration was settled in the amount of $9,000.00.
- On May 9, 2008 a customer initiated a complaint naming Mr. Graziano regarding alleged actions that occurred while he was associated with American Capital Partners, LLC (CRD # 119249). The customer alleged unauthorized trading and churning. The customer further alleged damages in the amount of $7,500.00. On August 26, 2008 the complaint was closed out with no action.
If you or someone you know has or had a brokerage account with Anthony Jospeh Graziano or Joseph Stone Capital L.L.C. and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
