Former New York Broker Booked for Unauthorized Trading

Customer of Former New York Financial Advisor Is Requesting Over $850K in Damages

In July 2022, the Financial Industry Regulatory Authority (FINRA) permanently barred Joseph Albert Ambrosole after he refused to testify in the self-regulatory organization’s (SRO) probe. FINRA led this investigation concerning an amended Uniform Termination Notice by Joseph Stone Capital, one of the broker-dealers where he used to be registered. According to that member firm, Ambrosole, who resigned, was the subject of a customer complaint accusing him of allegedly engaging in unsuitable trading.

The ex-New York broker, who worked in the industry for eight years, was most recently a Joseph Stone Capital financial advisor between 2017 to 2021. Other firms where Ambrosole used to be a registered representative include Alexander Capital, Meyers Associates, Global Arena Capital, Laidlaw & Co., and Obsidian Financial Group.

This is not the first time Ambrosole has been accused of excessive or unsuitable trading. He also has been sanctioned by FINRA in the past.

If you are a former customer of Joseph Ambrosole and you would like to explore your legal options, contact our New York excessive trading attorneys and financial fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today at (716) 402-1521.

Ambrosole Also Has Faced Churning and Overconcentration Allegations

According to Joseph Ambrosole’s Central Registration Depository (CRD), he has ten disclosures on record. This includes at least one pending customer dispute from July 2021 in which the claimant, alleging unauthorized trading, requests over $850K in damages. The other nine disclosures include customer disputes that resulted in settlements and earlier regulatory cases against him, such as:

June 2021: The Maryland Securities Commissioner suspended Ambrosole pending the findings of an investigation into his unauthorized trading activities.

April 2021: FINRA fined Ambrosole $5K, ordered him to pay over $147K in restitution, and suspended the then-financial advisor for six months after finding that he allegedly made excessive and unauthorized trading in two customers’ accounts. This purportedly included the account belonging to an elderly client who was cognitively impaired. The former New York broker allegedly recommended 157 trades that caused this investor, who had average monthly equity of $300K in one account, to pay over $126K in commissions and trading fees.

The second account, jointly owned with a $70K average monthly equity, was charged over $20,400 in commissions and fees because of Ambrosole’s allegedly unsuitable investment recommendations.

March 2021: The New Hampshire Bureau of Securities Regulation ordered Ambrosole to pay $130K in penalties and $175K in restitution over the allegedly unauthorized trading that caused an older, impaired investor to suffer significant investment and stock losses.

August 2018: This negligence claim by a former customer of Ambrosole’s resulted in a $10K settlement.

March 2018: Alleging unsuitability, churning, and overconcentration, this investor received a $54,900 settlement.

February 2017: Also, an unauthorized trading claim, this dispute involved the purchase of a unit investment trust (UIT) for a customer but allegedly without their authorization. FINRA ordered Ambrosole to pay a $5K fine and nearly $646 restitution. He also was suspended from the industry for a month.

August 2016: FINRA again suspended Ambrosole for a few months after he allegedly did not respond to the SRO’s request for more information.

What Is Excessive Trading?

When a broker makes too many trades or trades too often in a customer’s account, the latter is charged exorbitant fees and commissions; that scenario is referred to as excessive trading or churning. This is most certainly not in customers’ best interests, and yet, some brokers continue to try to turn a profit by engaging in this illegal practice.

Brokerage firms could be liable for investor losses if churning occurs under their supervision or even if they were unaware of the excessive trading. The best way to pursue damages is to file a FINRA arbitration claim with the help of skilled securities lawyers.

Seasoned Churning Attorneys

Across the United States, SSEK Law Firm represents investors who have been the victim of churning in recouping their bond losses from the brokerage firms and financial advisors that should be held accountable.

Please feel free to connect with experienced stock loss attorneys and securities lawyers at (866) 926-4753 to learn how you can claim your damages from the ex-New York broker and/or his broker firm