Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Leonid Yurovsky (CRD # 4554905) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into excessive and unsuitable trading (churning).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Yurovsky
Registration Background for Leonid Yurovsky
Mr. Yurovsky first became registered in the securities industry in 2002. He is currently registered with Mineola, NY based Joseph Stone Capital L.L.C. (CRD # 159744). His prior registrations include PHX Financial, Inc. (CRD # 144403) from August 2015 to March 2016, National Securities Corporation (CRD # 7569) from July 2013 to May 2015, and John Thomas Financial (CRD # 40982) from September 2010 to June 2013.
FINRA’s Allegations Against Leonid Yurovsky
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 27, 2022 (No. 2020066888401), Mr. Yurovsky consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “From June 2016 through November 2019, [Mr.] Yurovsky excessively and unsuitably traded two customer accounts”;
- “First, [Mr.] Yurovsky recommended that Customer A, a farmer with limited investment experience, place 252 trades in his account between June 2016 and November 2019”;
- “During that period, Customer A’s average monthly equity in his Joseph Stone account was approximately $158,600, yet [Mr.] Yurovsky’s recommended trades resulted in the customer paying approximately $165,000 in commissions and other trade costs”;
- “Collectively, [Mr.] Yurovsky’s recommendations resulted in an annualized cost-to-equity ratio of approximately 30 percent—meaning that Customer A’s account would have had to grow by more than 30 percent annually just to break even”;
- “Second, [Mr.] Yurovsky recommended that Customer B, a senior investor, place 41 trades in his account between July and December 2016”;
- “In several instances, [Mr.] Yurovsky recommended that Customer B sell a security shortly after purchasing it, even though [Mr.] Yurovsky’s recommendation to purchase the security had resulted in paying a substantial commission”;
- “These transactions required Customer B to pay almost $700 in commissions and trading fees to generate less than $95.00 in proceeds”;
- “Both Customers A and B relied on Yurovsky’s advice and accepted his recommendations”;
- “Those recommended transactions, which collectively resulted in the customers paying approximately $175,600 in commissions and other charges, were excessive and unsuitable”; and
- By virtue of his actions, Yurovsky violated FINRA Rule 2111 regarding suitability and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Suspends Leonid Yurovsky from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s December 27, 2022 AWC also indicates that Mr. Yurovsky consented to the following sanction(s):
- A five-month suspension from association with any FINRA member in all capacities; and
- Restitution in the amount of $10,648.61 plus interest.
Leonid Yurovsky Has A Prior History of Securities Industry Customer Complaints
In addition to Leonid Yurovsky being suspended by FINRA from the securities industry regarding excessive and unsuitable trading (churning), FINRA BrokerCheck for Mr. Yurovsky reveals that he has a prior history of customer complaints and/or customer-initiated arbitrations including but not necessarily limited to the following:
- On April 16, 2013 a customer initiated a written complaint against Mr. Yurovsky regarding alleged actions that occurred while he was associated with John Thomas Financial. The customer’s allegations included unsuitability and misrepresentation. The customer further alleged damages in the amount of $150,000.00. On December 16, 2014, the complaint was settled in the amount of $55,000.00.
Have You Lost Money Investing with Leonid Yurovsky?
If you or someone you know has or had a brokerage account with Leonid Yurovsky 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.
