Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker, Eugene McAdams (CRD # 4190211) was recently barred from the securities industry by FINRA’s Department of Enforcement after his failure to cooperate in an investigation into the suitability of recommendations in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. McAdams.
Registration Background for Eugene McAdams
Mr. McAdams first became registered in the securities industry in 2000. He was most recently registered with Joseph Stone Capital, L.L.C. (CRD # 159744). His previous registrations include but are not necessarily limited to Cape Securities Inc. (CRD # 7072) from July 2012 to September 2015 and PHD Capital (CRD # 38785) from June 2010 to July 2012.
FINRA’s Allegations Against Eugene McAdams
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated August 3, 2021, Mr. McAdams consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “On July 7, 2021, in connection with an investigation into the suitability of [Mr.] McAdams’s recommended securities transactions in customers’ accounts while registered through Joseph Stone, FINRA requested, pursuant to FINRA Rule 8210, that [Mr.] McAdams appear for on-the-record testimony”;
- “As stated in an email sent by [Mr.] McAdams’ counsel on July 7, 2021, and by this agreement, [Mr.] McAdams acknowledges that he received FINRA’s request and will not appear for on-the-record testimony at any time”; and
- By virtue of his actions, Mr. McAdams violated FINRA Rule 8210, regarding cooperating with investigations and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Eugene McAdams
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s August 3, 2021 AWC also indicates that Mr. McAdams consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities.
Eugene McAdams Has A History of Securities Industry Customer Complaints
In addition to Eugene McAdams being barred from the securities industry by FINRA for his failure to cooperate in an investigation into the suitability of recommendations in customer accounts, FINRA BrokerCheck for Mr. McAdams reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On May 30, 2018, a customer-initiated arbitration was commenced against Mr. McAdams regarding alleged actions that occurred while he was associated with Joseph Stone Capital, LLC. The customer alleged excessive and unnecessary trading on margin, elder abuse, false and misleading statements, fraud and negligence. The customer further alleged damages of $150,000.00. On May 15, 2019 the arbitration was settled in the amount of $20,000.00.
- On February 11, 2004, a customer initiated a written complaint against Mr. McAdams regarding alleged actions that occurred while he was associated with Milestone Financial Services Inc. The customer alleged unauthorized transactions. The customer further alleged damages of $60,000.00. On October 6, 2004 the complaint was settled in the amount of $17,500.00.
If you or someone you know has or had a brokerage account in which Eugene McAdams was the broker and have concerns regarding losses in your investments or possible sales practice violations, including fraud, churning or unsuitability, 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.