Financial Broker Joseph Jemel Steward Suspended For Churning

Joseph Jemel Steward (CRD# 3241331) a financial broker with 20 years of experience, has been suspended from the securities industry by the Financial Industry Regulatory Authority (FINRA). The suspension followed allegations that he engaged in excessive and unsuitable trading that was not in the best interest of his customer. Steward most recently worked at PHX Financial, Inc. in Richmond Hill, New York, where he was employed for three years.

According to FINRA disclosures, the customer routinely relied on Steward’s advice and followed his recommendations, giving Steward de facto control over the account.  His trading activity generated a high turnover rate and a cost-to-equity ratio exceeding accepted industry thresholds.

Under the Best Interest Obligation under Rule 15/-1(a)(1) of the Securities Exchange Act of 1934, broker-dealers and their associated persons must act in the best interest of retail customers when making investment recommendations. FINRA found that Steward’s frequency of trading resulted in $25,939 in commissions while causing $24,568 in losses for the client. Such trading activity is considered churning and violates the best interest standard.

Churning is when a broker-trader buys and sells securities frequently for the purpose of generating commissions and personal gain instead of focusing on making the client money. The average commission fee for both buying and selling is $5-$15, while some get 1-2% of the transaction value.

Joseph Jemel Steward did not admit or deny the findings, but the resolution was suspension, $6,000 restitution to the client and he signed an acceptance, waiver & consent (AWC).

Did You Invest with Joseph Jemel Steward?

If you had investments with Joseph Jemel Steward you may have concerns about how your accounts were handled. It is important to review your records carefully and explore your legal options. Investors may wish to consult with a securities attorney to understand potential remedies available.

Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won’t owe us until we recover your money for you. Contact us today at (800) 975-4345 and let us know how we can help.