Securities Arbitration Lawyer Blog
Ross Barish is a stockbroker with Joseph Stone Capital L.L.C. (“Joseph Stone Capital”) in Mineola, New York. Mr. Barish is currently under investigation by the United States Securities and Exchange Commission (“SEC”) for defrauding sixteen retail customers by executing a high-cost, in-and-out pattern of trading that lost his customers over $800,000 while generating commissions and fees for him of more than $400,000.
The sixteen customers experienced total losses of $814,509.
If you have suffered financial losses investing with Ross Barish or Joseph Stone Capital L.L.C., or suspect that Mr. Barish did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.
Iorio Altamirano LLP 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, Iorio Altamirano LLP 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: Iorio Altamirano LLP Investigation into Joseph Stone Capital L.L.C. Reveals Troubling Pasts for Owners, Executives, and Brokers
Mr. Barish is one of the brokers who had serious incidents reported on his BrokerCheck report.
Financial Ross Adam Barish (CRD No. 3094364)
Mr. Barish has 22 years of experience in the securities industry and has been associated with seven broker-dealers. He averages just over three years at each stop. In February 2013, he was hired by Joseph Stone Capital.
Prior Associations
Mr. Barish has been affiliated with the following brokerage firms:
- Joseph Stone Capital L.L.C. in Mineola, New York, from February 2013 to the present.
- First Midwest Securities, Inc. in Garden City, New York, from October 2008 to February 2013.
- J.P. Turner & Company, L.L.C. in Westbury, New York, from February 2008 to October 2008.
- Ladenburg Thalmann & Co. Inc. in Princeton, New Jersey, from September 2006 to February 2008.
- Broadwall Capital LLC in New York, New York, from September 2004 to September 2006.
- Ladenburg, Thalmann & Co, Inc. in New York, New York, from November 2002 to September 2004.
- Ladenburg Capital Management Inc. in Bethpage, New York, from January 2000 to November 2002.
- Sands Brothers & Col. in New York, New York, from March 1999 to January 2000.
SEC Investigation
The SEC’s complaint alleged that Mr. Barish defrauded sixteen retail customers by executing a high-cost, in-and-out pattern of trading that lost his customers over $800,000 while generating commissions and fees for him of more than $400,000. Although Mr. Barish told customers that he was an experienced broker, Mr. Barish did nothing more than buy stocks and sell them after a brief holding strategy. According to the complaint, his “strategy” amounted to a scheme to enrich himself while persuading customers that profits were just around the corner.
According to the SEC’s complaint, Mr. Barish’s conduct in relation to these sixteen customers, whose accounts were active during different periods of time between 2013 and July 2019, violated the antifraud provisions of the federal securities laws in four respects:
- Mr. Barish had a duty to have a reasonable basis for recommendations that he made of his customers. In violation of this duty, Mr. Barish recommended to sixteen customers a high cost, in-and-out trading strategy without any reasonable basis to believe that these recommendations were suitable for anyone. The recommended trading strategy resulted in losses for the customers and ill-gotten gains for Mr. Barish. Mr. Barish knew or recklessly disregarded that his recommendations, for which he had no reasonable basis, were not suitable for anyone.
- Mr. Barish’s recommended trading strategy was unsuitable for his customers in light of those customers’ financial needs, investment objectives, and circumstances.
- Mr. Barish made material misrepresentations to and omitted material information from his customers. By making a recommendation to purchase or sell a security to a customer, Mr. Barish implicitly represented that he had a reasonable basis for that recommendation. As Mr. Barish failed to have a reasonable basis for his recommendations to the sixteen customers, these recommendations constituted misrepresentations because Mr. Barish knew that the excessive costs which accumulated from the frequency trading made even a minimal profit all but impossible.
- Mr. Barish engaged in unauthorized trading by placing trades in customer accounts without obtaining their authorization to do so.
As a result of these violations, Mr. Barish received more than $400,00 in commissions and fees. The sixteen customers experienced total losses of $814,509.
Customer Complaints
According to his BrokerCheck report, Mr. Barish has been the subject of two customer lawsuits, in the form of FINRA securities arbitrations, since 2017:
- Customer Dispute (April 2017): A customer filed a securities arbitration complaint alleging $48,000 in damages as a result of unsuitable investment recommendations, excessive trading, breach of fiduciary duty, and breach of contract. The matter was settled by Joseph Stone Capital, LLC and Mr. Barish for monetary compensation.
- Customer Dispute (February 2017): A customer filed a securities arbitration complaint alleging $50,000 in damages as a result of unsuitable investment recommendations, churning, and excessive margin. The matter was settled by Joseph Stone Capital, LLC and Mr. Barish for monetary compensation.
Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.
Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive number of trades and did so with the intent to defraud or reckless disregard for the customer’s interest.
Excessive trading and churning are unethical and illegal practices in the securities industry. They are all also violations of securities rules and regulations and can cause enormous harm to customers.
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 Ross Barish 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 Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.
**Corrections and Clarifications: June 30, 2021**
- An earlier version of this blog post incorrectly stated that according to a 2017 investigation by Reuters, out of all of the brokerage firms in the country, Joseph Stone Capital hired the most brokers with a history of significant disclosures. 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, not the most.