Securities Arbitration Lawyer Blog
**Update: November 8, 2021** On April 15, 2021, FINRA’s Department of Enforcement filed disciplinary proceeding No. 2019063626703 against former Joseph Stone Capital broker Abdul Rahmani. On October 28, 2021, Mr. Rahmani submitted an Offer of Settlement to FINRA’s Department of Enforcement. On November 2, 2021, FINRA’s Department of Enforcement and the National Adjudicatory Council (NAC), a Review Subcommittee of the NAC, or the Office of Disciplinary Affiars (ODA) have accepted Mr. Rahmani’s offer of settlement. Under the terms of the settlement, Mr. Rahmani has consented to a bar from the securities industry.
Original Post:
FINRA Files Enforcement Action Against Former Joseph Stone Capital, LLC. Broker Abdul Rahmani
The Financial Industry Regulatory Authority’s Department of Enforcement has filed a disciplinary proceeding complaint against former Joseph Stone Capital, LLC broker Abdul Rahmani. The complaint alleges that between October 2018 and March 2019, while registered with Joseph Stone Capital LLC, Mr. Rahmani engaged in undisclosed outside business activity through and on behalf of an entity called Axe Marketing Group LLC. Axe Marketing Group LLC, which also operated under the name Access Pre IPO, advertised its business as marketing and selling shares of pre-initial public offering (IPO) companies to investors. Mr. Rahmani solicited and met with prospective clients of Axe Marketing, which operated from the same office where Mr. Rahmani conducted his securities business with Joseph Stone Capital LLC.
According to the complaint, Mr. Rahmani also failed to cooperate with FINRA’s investigation and provided false and misleading information to FINRA during the investigation.
If you suffered financial losses investing with either Abdul Rahmani, or Joseph Stone Capital, LLC, contact securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your legal rights.
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
Financial Advisor Abdul Martin Rahmani (CRD No. 4269583)
Mr. Rahmani had 18 years of experience in the securities industry and has been associated with nine different brokerage firms:
- Joseph Stone Capital LLC in Mineola, NY, from June 2018 to August 2020.
- Worden Capital Management in Melville, NY, from December 2017 to May 2018.
- SW Financial in Melville, NY, from August 2016 to December 2017.
- Corinthian Partners, LLC in New York, NY, from September 2013 to September 2016.
- MML Investors Services, LLC in New York, NY, from July 2008 to April 2013.
- Ameritas Investment Corp. in New York, NY, from February 2007 to July 2008.
- Signator Investors, Inc. in Boston, MA, from March 2003 to June 2006.
- Metlife Securities Inc. in Springfield, MA, from November 2000 to March 2003.
- Metropolitan Life Insurance Company in New York, NY, from November 2003 to March 2003.
On three occasions, Mr. Rahmani’s employment was terminated after allegations of misconduct. Most recently, in December 2017, Mr. Rahmani was discharged from SW Financial after he hired a sales assistant and opened a branch office under the name of his outside business without permission of the firm. In April 2013, MML fired Mr. Rahmani for conducting unapproved outside business activity while on special supervision. Finally, in March 2003, MetLife “permitted him to resign” after alleging that he violated company policies, including apparent forgery and altering company documents.
According to his public disclosure report with FINRA, Mr. Rahmani has been the subject of several monetary liens:
- $67,065.29 tax lien (2019).
- $30,063 civil judgment / lien in Kings County, NY (2013).
- $8,055 civil judgment / lien in Essex County, NY (2013).
Joseph Stone Capital LLC, Worden Capital Management, and SW Financial – Supervisory Duties
Brokerage firms like Joseph Stone Capital LLC, Worden Capital Management, and SW Financial must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise their financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you or a loved one were a customer of Abdul Rahmani, Joseph Stone Capital LLC, Worden Capital Management, or SW Financial and either sustained financial losses or suspect that Mr. Rahmani did not have your best interest in mind when recommending investments or making account transactions, 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 evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration 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.