On February 15, 2024, the GWG Wind Down Trust filed a status report with the United States Bankruptcy Court for the Southern District of Texas for the quarter ending December 31, 2023. Although the status report did not include an updated financial statement, there are several key takeaways:
On September 8, 2022, FINRA announced that it had ordered Joseph Stone Capital L.L.C. (“Joseph Stone”) to pay restitution of approximately $825,000 to customers whose accounts were excessively traded by the firm’s representatives.
In related settlements, FINRA suspended eight current or former Joseph Stone representatives and required them to pay, collectively, an additional $211,000 in restitution to impacted customers. Additionally, FINRA suspended three Joseph Stone supervisors for failing to reasonably identify or respond to red flags of excessive trading and barred two representatives for refusing to respond to FINRA’s requests for information in connection with the investigation.
If you suspect your account was excessively traded at Joseph Stone Capital L.L.C., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
In an annual report more than two decades ago, Warren Buffett dispensed some wise words of knowledge: “You only find out who is swimming naked when the tide goes out.” Reportedly, Mr. Buffett was referring to knowing what risks a company is taking until it faces adverse conditions. Mr. Buffett used the same phrase again in 2008 about the foolishness of large financial institutions exposed by falling home prices.
Mr. Buffett’s words of wisdom can also be applied to investment recommendations made by a financial advisor in a bull market. Almost everyone looks like a genius in a booming market, including financial advisors. However, when the stock market enters into a correction, or something even more dreadful, the real risks of an investment or investment strategy are exposed, often leaving a trail of investment losses in their wake.
Investors who have suffered investment losses due to unsuitable or misleading investment recommendations by brokers or brokerage firms should consult with a lawyer to review their legal rights.
FINRA has suspended Joseph Scott Audia, formerly with Joseph Stone Capital L.L.C., from associating with any FINRA member in all principal capacities for two months. Audia consented to the sanctions and to the entry of findings that he failed to reasonably supervise a registered representative, who excessively and unsuitably traded certain customer accounts.
Audia’s suspension is scheduled to begin on January 18, 2022, and end on March 17, 2022. He was fined $5,000 and agreed to complete 20 hours of continuing education concerning supervisory responsibilities.
If you have been harmed by Joseph Scott Audia, or Joseph Stone Capital L.L.C., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA has suspended Joseph Stone Capital L.L.C. broker Todd Kling from the securities industry for three months. Kling consented to the sanction and to the entry of findings that he engaged in excessive and unsuitable trading, including the use of margin, in a senior customer’s account.
Kling’s suspension is scheduled to begin on January 18, 2022, and end on April 17, 2022.
If you have lost money with Todd Kling, or Joseph Stone Capital L.L.C., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA has suspended Adam Maggio, with Joseph Stone Capital L.L.C., from associating with any FINRA member in all principal capacities for five months. Maggio has been registered in multiple capacities with Joseph Stone Capital L.L.C. since February 2013, including as a General Securities Principal.
Maggio consented to the sanctions and to the entry of findings that he failed to reasonably supervise trading in certain customer accounts for potentially excessive activity. His suspension is scheduled to begin on January 3, 2022, and end on June 2, 2022. He was fined $5,000 and will also undertake to attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities.
If you have been harmed by Adam Maggio, or Joseph Stone Capital L.L.C., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
FINRA has suspended Anthony Graziano, with Joseph Stone Capital L.L.C., from associating with any FINRA member in all principal capacities for three months. Graziano first became registered as a General Securities Representative and General Securities Principal with Joseph Stone Capital L.L.C. in June 2015 and subsequently became registered with the firm as a Compliance Officer in October 2018.
Graziano consented to the sanctions and to the entry of findings that he failed to reasonably supervise a registered representative of his firm, who excessively traded a customer’s account.
Graziano’s suspension is scheduled to begin on January 3, 2022, and end on April 2, 2022. He was also fined $5,000 and will undertake to attend and satisfactorily complete 20 hours of continuing education concerning supervisory responsibilities.
FINRA has suspended Joseph Stone Capital L.L.C. broker Douglas Rosenberg from the securities industry for seven months. Rosenberg consented to the sanctions and to the entry of findings that he excessively and unsuitably traded the accounts of three customers. As a result of Rosenberg’s unsuitable recommendations, his customers suffered a total of over $154,000 in realized losses and paid a total of $89,652 in commissions, trading costs, and margin interest.
Rosenberg’s suspension is scheduled to begin on January 3, 2022, and end on August 2, 2022. He was also ordered to pay partial restitution to the three customers of $25,000.
If you have lost money with Douglas Rosenberg, or Joseph Stone Capital L.L.C., contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading
Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.
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