Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that Joseph A. Ambrosole (CRD # 5732488) was recently suspended from the securities industry by FINRA’s Department of Enforcement for engaging in unauthorized and excessive trading (churning) in customer accounts.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Ambrosole.
Registration Background for Joseph Ambrosole
Mr. Ambrosole first became registered in the securities industry in 2011. He is currently registered with New York, NY based Joseph Stone Capital L.L.C. (CRD # 159744). His prior registrations include Alexander Capital, L.P. (CRD # 40077) from July 2017 to November 2017, Meyers Associates, L.P. (CRD # 34171) from August 2015 to September 2016 and Joseph Stone Capital L.L.C. from April 2015 to July 2015.
FINRA’s Allegations Against Joseph Ambrosole
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 7, 2021, Mr. Ambrosole consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between December 2017 and June 2020, [Mr.] Ambrosole excessively and unsuitably traded the accounts of two customers”;
- “The first belonged to an elderly customer (Customer A), who was 78 years old when he opened the account”;
- “[Mr.] Ambrosole’s recommended trades resulted in an annualized cost-to-equity ratio of approximately 20 percent, which means that Customer A’s account would have had to grow by more than 20 percent annually just to break even”;
- “The second account belonged jointly to Customer A and his wife (Customer B)”;
- “Customer B was a senior with limited investment knowledge and experience”;
- “During approximately one year in the relevant period (specifically, from July 2019 to June 2020), [Mr.] Ambrosole recommended and executed 40 trades in [the joint] account, which caused Customer A and Customer B to pay more than $20,400 in commissions and other trading costs”;
- “Collectively, [Mr.] Ambrosole’s recommendations caused Customer A and Customer B to pay $147,031.50 in commissions and other trading costs during the relevant period”;
- “[Mr.] Ambrosole’s recommended securities transactions were excessive and unsuitable given the customers’ investment profiles”; and
- By virtue of his actions, Mr. Ambrosole violated FINRA Rule 2111, regarding suitability and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Joseph Ambrosole
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s April 7, 2021 AWC also indicates that Mr. Ambrosole consented to the following sanction(s):
- A six-month suspension from association with any FINRA member in all capacities;
- A fine in the amount of $5,000.00; and
- Restitution in the amount of $147,031.50.
Joseph Ambrosole Has A History of Securities Industry Customer Complaints
In addition to Joseph Ambrosole being suspended by FINRA from the securities industry, FINRA BrokerCheck for Mr. Ambrosole reveals that he has a history of customer complaints and/or customer initiated arbitrations, including but not necessarily limited to the following:
- On August 2, 2018, a customer-initiated arbitration was filed naming Mr. Ambrosole as a respondent, regarding alleged actions that occurred while he was associated with Global arena Capital Corp. The customer alleged common law fraud, breach of fiduciary duty, negligence and breach of contract. The customer further alleged damages in the amount of $100,000.00. On May 30, 2019, the arbitration was settled in the amount of $10,00.00.
- On March 12, 2018, a customer-initiated arbitration was initiated naming Mr. Ambrosole as a respondent, regarding alleged actions that occurred while he was associated with Global arena Capital Corp. The customer alleged churning, unsuitability and over concentration. The customer further alleged damages in the amount of $275,000.00. On March 28, 2019, the arbitration was settled in the amount of $54,900.00, with Mr. Ambrosole personally responsible for $30,000.00.
If you or someone you know has or had a brokerage account with Joseph A. Ambrosole 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.