Written by The White Law Group• July 29, 2022• 7:28 pm• Blog, Broker Investigations

Joseph Ambrosole Barred from Securities Industry

Joseph Ambrosole, Joseph Stone Capital Advisor, Barred from Securities Industry, featured by top securities fraud attorneys, the White Law Group

FINRA Bars Joseph Ambrosole after Allegations of Unsuitable and Excessive Trades

According to the Financial Industry Regulatory Authority (FINRA) on July 28, 2022, the regulator reportedly barred Joseph A. Ambrosole (CRD#: 5732488) from the securities industry after he allegedly refused to appear for on-the-record testimony requested by FINRA in connection with its investigation.

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According to FINRA, the investigation was concerning an amended Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Ambrosole’s member firm reportedly disclosing a customer complaint alleging that Ambrosole engaged in unsuitable trading.

Ambrosole was reportedly suspended by FINRA in April 2021 for allegedly excessively and unsuitably trading the accounts of two customers. The first account reportedly belonged to an elderly customer who began to sustain permanent, progressive, neurological and cognitive impairments, according to FINRA’s findings.

This customer’s account reportedly had an average monthly equity of approximately $300,000 and Ambrosole allegedly recommended and executed 157 trades, which purportedly caused the customer to pay more than $126,000 in commissions and other trading costs.

The second account reportedly belonged jointly with the first and had an average monthly equity of approximately $70,000. Ambrosole allegedly recommended and executed 40 trades in this account which purportedly caused the customers to pay more than $20,400 in commissions and other trading costs. The customers reportedly relied on Ambrosole’s advice and accepted his recommendations. In addition to the suspension, Ambrosole was reportedly required to pay a $5,000 fee plus restitution of $147,031.50.

According to his FINRA BrokerCheck report, Ambrosole reportedly has a history of disciplinary actions, including six regulatory actions and three customer complaints. According to his broker record, Ambrosole was reportedly affiliated with the following FINRA registered firms, during his career in the securities industry, among others:

11/09/2017 – 06/29/2021, JOSEPH STONE CAPITAL L.L.C. (CRD#:159744), NEW YORK, NY,

07/31/2017 – 11/06/2017, ALEXANDER CAPITAL, L.P. (CRD#:40077), NEW YORK, NY

Failure to Supervise

When brokers and registered investment advisors violate securities laws, such as making unsuitable investment recommendations or unauthorized trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

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We represent investors in all 50 states including New York. Our attorneys have recovered millions of dollars from many brokerage firms in the past.