StoneX (formerly SA Stone Wealth Management) – Regulatory History Review
The White Law Group is reviewing the regulatory history of StoneX (CRD#: 18456/SEC#: 8-36638) (formerly SA Stone Wealth Management and Sterne Agee Financial Services). The firm, headquartered in Birmingham, Alabama, is a FINRA-registered broker-dealer (CRD#: 18456) with a long history of regulatory events, arbitrations, and broker misconduct cases. Most recently, on June 20, 2025, the firm consented to a $1.35 million fine from the New York State Department of Financial Services for cybersecurity violations, including failure to implement multi-factor authentication, properly report cybersecurity events, and certify annual compliance.
Firm Overview and Regulatory Disclosures
StoneX/SA Stone Wealth Management reportedly has 13 disclosures on its record. Regulatory actions may include censures, fines, suspensions, or restitution, all of which can negatively affect a broker-dealer’s reputation.
Recent Regulatory Actions
- June 2025 – $1.35 million cybersecurity fine by NYDFS.
- May 2017 – Censured and fined $160,000 for failure to supervise.
- September 2015 – Censured and fined $25,000 for mismarked order tickets.
- December 2013 – Fined $75,000 for supervisory failures.
- April 2013 – Fined $50,000 for lack of diligence with customers.
Notable Broker Misconduct
Several registered representatives associated with SA Stone/StoneX have been implicated in misconduct and fraud:
- Robert C. Starnes CRD#: 1429794) – Permanently barred by FINRA after 36 years in the industry. Discharged in 2023 for client fund violations; facing a pending $3 million fraud dispute.
- Christopher Todd Wendel (CRD#: 1930870) – Barred by FINRA after selling away investments in the fraudulent Woodbridge Mortgage Investment Funds. Record includes 12 disclosures, including multiple customer disputes.
- October 2022 – Kansas-based advisor suspended one year and fined $10,000 for participating in unapproved private securities transactions involving blockchain and software businesses.
- May 2017 – Sales Director Deborah Kelley (CRD#: 1179082) pled guilty to securities fraud in a bribery scheme involving the New York State Common Retirement Fund.
FINRA Rule 3110 – Supervision Requirements
Under FINRA Rule 3110, firms must establish supervisory systems to detect and prevent violations of securities laws. StoneX/SA Stone has faced multiple sanctions for failures in this area, raising concerns about investor protections.
Investor Recovery Options through FINRA Arbitration
If you have suffered investment losses with StoneX/SA Stone or its brokers, you may be entitled to pursue claims through FINRA arbitration. This process is generally faster and less expensive than court litigation, and brokerage firms may be held liable for broker misconduct such as fraud, unsuitable recommendations, or unauthorized trading.
National Securities Fraud Attorneys
The White Law Group has handled over 800 FINRA arbitration cases nationwide. With offices in Seattle, Washington, and Chicago, Illinois, our attorneys help investors recover losses caused by securities fraud, broker misconduct, and regulatory failures.
FAQs
The firm rebranded under StoneX as part of a broader restructuring and integration effort. Despite the name change, its regulatory and enforcement history remains accessible through FINRA BrokerCheck.
Firms with repeated supervisory failures or fraud-related misconduct increase the risk of unsuitable investments, loss of funds, and potential exposure to fraudulent schemes. Investors should carefully review a firm’s regulatory history before investing.
Yes. Even if a broker has been barred, their employing firm may still be liable for client losses through FINRA arbitration. Investors can pursue recovery claims against the firm for failing to supervise the barred advisor properly.
