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Former Joseph Stone Capital L.L.c. Broker, Eugene McAdams, Barred by FINRA
On August 3, 2021, the Financial Industry Regulatory Authority (“FINRA”) and former Joseph Stone Capital L.L.C. stockbroker Eugene McAdams entered into a Letter of Acceptance, Waiver, and Consent No. 2020066887801 whereby Mr. McAdams consented to a bar from the securities industry. Mr. McAdams consented to the expulsion after refusing to cooperate with a FINRA investigation into whether he made suitable investment recommendations to customers while registered with Joseph Stone Capital.
Mr. McAdams, associated with Joseph Stone Capital from September 2015 to June 2020, has also been the subject of at least two customer complaints. The causes of action of the two complaints, which resulted in monetary compensation to the customers, included excessive trading on margin, elder abuse, false and misleading statements, fraud, negligent misrepresentation, breach of fiduciary duty, and unauthorized trading.
If you have suffered financial losses investing with Eugene McAdams or Joseph Stone Capital L.L.C., or suspect that Mr. McAdams did not have your best interest in mind when recommending investments or making account transactions, contact our New York securities arbitration law firm for a free and confidential review of your legal rights.
Iorio Law PLLC represents investors that have disputes with their financial advisors or brokerage firms, such as Joseph Stone Capital.
Joseph Stone Capital L.L.C.
According to a 2017 investigation by Reuters, out of all of the brokerage firms in the country, Joseph Stone Capital hired the second most brokers with a history of significant disclosures. In 2021, our law firm set out to update that analysis.
The investigation revealed that seventy-six percent (76%) of Joseph Stone Capital’s brokers and supervisors have significant red flag public disclosures. Significant red flag disclosures include:
- regulatory sanctions,
- terminations of employment after allegations of misconduct,
- customer disputes that result in an award or settlement, and
- prior association with a firm that FINRA has expelled.
You can read the full investigative report here: Investigative Report: Our Law Firm Investigation into Joseph Stone Capital L.L.C. Reveals Troubling Pasts for Owners, Executives, and Brokers
FINRA Letter of Acceptance, Waiver, and Consent No. 2020066887801
Eugene McAdams and FINRA entered into a Letter of Acceptance, Waiver, and Consent on August 3, 2021, after Mr. McAdams refused to appear for on-the-record testimony connected with FINRA’s investigation. The investigation concerned the suitability of Mr. McAdam’s recommended securities transactions in customers’ accounts while registered through Joseph Stone Capital.
On July 7, 2021, in connection with FINRA’s investigation, FINRA sent a request to Mr. McAdams for on-the-record testimony pursuant to FINRA Rule 8210. On July 7, 2021, Mr. McAdams responded by email that he would not appear for on-the-record testimony at any time.
By refusing to testify, Mr. McAdams violated FINRA Rules 8210 and 2010.
Financial Advisor Eugene A. McAdams (CRD No. 4190211)
Eugene A. McAdams had 19 years of experience in the securities industry and had been associated with 14 different firms, including three firms that have been expelled from the industry by FINRA.
Mr. McAdams has also been the subject of at least two customer disputes:
- Customer Dispute (June 2018): A customer filed a securities arbitration complaint alleging $150,000 in damages as a result of excessive and unnecessary trading on margin, elder abuse, false and misleading statements, fraud, negligent misrepresentation, and breach of fiduciary duty. McAdams denied the allegations but settled the matter for monetary compensation.
- Customer Dispute (February 2004): A customer alleged that Mr. McAdams made unauthorized transactions that resulted in $80,000 in damages. McAdams and Milestone Financial Services, Inc., the firm that employed Mr. McAdams at the time of the alleged conduct, settled the matter for $60,000.
FINRA’s BrokerCheck tool can be used to obtain Mr. McAdam’s complete and updated disclosure reports.
Joseph Stone Capital – A Duty to Supervise
Financial institutions like Joseph Stone Capital must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as excessive trading, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you have suffered investment losses with Eugene McAdams or Joseph Stone Capital or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Law PLLC. August Iorio can be reached at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential review of your legal rights.
About Iorio Law PLLC
Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.
We have over 15 years of experience as securities arbitration lawyers and have helped investors recover investment losses in over 800 cases. The firm will file a FINRA securities arbitration claim on your behalf on a contingency fee basis to try to recover your losses. If we do not obtain a recovery, you do not owe us a legal fee.
This blog was published by August Iorio when he was a Partner at his previous firm and has been updated to reflect Iorio Law PLLC’s new contact information. To evaluate any potential claims, contact securities arbitration lawyer August Iorio for a free consultation contact Iorio Law PLLC at info@iorio.law or (646) 330-4624.