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Written by • August 5, 2021• 3:09 pm• Blog, Current Investigations

Eugene McAdams Barred from Securities Industry

Joseph Stone Capital Advisor Eugene McAdams Barred from Securities Industry, featured by top securities fraud attorneys, The White Law Group

FINRA Reportedly Bars Broker Eugene McAdams after Allegations of Unsuitable Investment Recommendations

According to the Financial Industry Regulatory Authority (FINRA), the regulator has reportedly barred financial advisor EUGENE ARTHUR MCADAMS (CRD#: 419021) after he reportedly refused to provide on-the-record testimony requested by FINRA in connection with its investigation into the alleged suitability of his recommended securities transactions in customers’ accounts while registered with his member firm.

McAdams reportedly has two customer complaints that were settled, according to his broker profile.  Allegations include “excessive and unnecessary trading on margin; elder abuse; false and misleading statements; fraud; negligent misrepresentation; breach of fiduciary duty,” and “unauthorized transactions.”

According to FINRA, Eugene McAdams was reportedly affiliated with the following firms, among others:

09/24/2015 – 06/17/2020, JOSEPH STONE CAPITAL L.L.C. (CRD#:159744), CENTER MORICHES, NY

07/12/2012 – 09/23/2015, CAPE SECURITIES INC. (CRD#:7072), LAKE GROVE, NY

06/23/2010 – 07/11/2012, PHD CAPITAL (CRD#:38785). NEW YORK, NY

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential securities claims involving Eugene McAdams and the liability his employers may have for failure to properly supervise his activities.

When brokers abuse client accounts or conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. 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.

If you suffered losses investing with Eugene McAdams, the attorneys at The White Law Group may be able to help you by filing a FINRA Arbitration claim against his former employers. For a free consultation, with a securities attorney please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.

 

 

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→ StHealth Capital Investment Corp. BDC Securities Investigation Investigating Potential Claims involving StHealth Capital Investment Corp. The White Law Group is investigating potential securities claims involving broker dealers who may have improperly recommended StHealth Capital Investment Corp. to investors. If you are concerned about this investment, the securities attorneys of The White Law Group may be able to help you. StHealth Capital Investment Corporation (formerly known as First Capital Investment Corp.) seeks to invests in private U.S. small- and middle-market companies. The BDC invested approximately $9.6 million in nine portfolio companies, as of September 2019. From February to November 2019, the company issued 3 million shares of its common stock and received gross proceeds of approximately $5.7 million for an average share price of $1.88. Risks of Investing in STHealth Capital Investment Corp. According to its prospectus, there is a very long list risk factors for investing in this particular Business Development Company (BDC). Here are just a few: The Advisor has no prior experience managing a BDC or a RIC. The Company’s shares will not be listed on an exchange or quoted through a quotation system for the foreseeable future, if ever. Therefore, if Shareholders purchase shares in securities or share offerings by the Company, it is unlikely that they will be able to sell them and, if they are able to do so, it is unlikely that they will receive a full return of their invested capital. The Company is not obligated to complete a liquidity event by a specified date; therefore, it will be difficult for an investor to sell his or her shares. The net asset value of the Company’s common stock may fluctuate significantly. The Company has a limited operating history. An investor may not have the opportunity to evaluate historical data or assess investments prior to purchasing its shares. The Company may be unable to invest a significant portion of the net proceeds of its offering on acceptable terms in an acceptable timeframe. The Company may pay distributions from offering proceeds, borrowings or the sale of assets to the extent its cash flows from operations, net investment income or earnings are not sufficient to fund declared distributions. A Shareholder’s interest in the Company will be diluted if it issues additional shares, which could reduce the overall value of an investment in the Company. Risks of investing in Business Development Companies (BDCs). BDCs were created by the U.S. Congress to stimulate investments in privately owned American companies that may have limited access to debt and equity capital. Non-traded BDCs offer retail investors access to private debt, an asset that typically has only been available to high-net-worth and institutional investors. By investing in a non-traded BDC, individuals are able to pool their capital to invest in private American companies. For more information on BDCs, please see: BDCs – the good, the bad, and the UGLY Business Development Companies operate much in the same was as REITs (Real Estate Investment Trusts) with non-traded BDCs having many of the same problems for investors as non-traded REITs – like high-risk, high commissions, and lack of liquidity. BDC Sales & Performance took a Dive in 2020 Unfortunately for investors, sales of nontraded BDCs hit new lows in 2020 and also had poor performance due to COVID-19’s negative effect on returns, according to a report by Robert a Stanger & Co. Broker-dealers reportedly sold just $362.3 million in nontraded BDCs last year, the least since 2010, which was the year after the first product was launched, according to Robert A. Stanger & Co. Inc. Broker-dealers have sold more than $22.6 billion of nontraded BDCs since 2009. The brokers or advisors usually charge a 7% commission and the firm 1%, which translates into a total of $1.8 billion in commissions over that time, according to Investment News. Many of these non-traded BDCs were promised to provide steady growth, and invulnerability from volatile markets, which has not happened. According to the Wall Street Journal, FINRA’s Vice President for Corporate Financing has said these products are an “ongoing concern” for the regulator and that “firms must ensure they are suitable for an investor’s risk profile and investment strategy.” Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim. Potential Lawsuits to Recover Financial Losses If you are concerned about an investment in StHealth Capital Investment Corp. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 888-637-5510 for a consultation. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit http://whitesecuritieslaw.com. » StHealth Capital Investment Corp. BDC attorney, StHealth Capital Investment Corp. BDC current value, StHealth Capital Investment Corp. BDC distributions, StHealth Capital Investment Corp. BDC dividends, StHealth Capital Investment Corp. BDC investigation, StHealth Capital Investment Corp. BDC investor relations, StHealth Capital Investment Corp. BDC lawsuit, StHealth Capital Investment Corp. BDC lawyer, StHealth Capital Investment Corp. BDC litigation, StHealth Capital Investment Corp. BDC redemptions, StHealth Capital Investment Corp. BDC risks,StHealth Capital Investment Corp. BDC secondary market, StHealth Capital Investment Corp. BDC share price , First Capital Investment Corp. 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