{"id":10814,"date":"2022-09-23T10:47:58","date_gmt":"2022-09-23T14:47:58","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=10814"},"modified":"2022-09-23T10:47:58","modified_gmt":"2022-09-23T14:47:58","slug":"brokerage-firm-fined-1m-for-churning-customers-may-file-finra-arbitration-claims","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/brokerage-firm-fined-1m-for-churning-customers-may-file-finra-arbitration-claims\/","title":{"rendered":"Brokerage Firm Fined $1M For Churning, Customers May File FINRA Arbitration Claims"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-10205 size-full\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg\" alt=\"Broker-dealer Joseph Stone Capital (CRD# 159744\/SEC# 8-69014), based in Mineola, NY, has recently been fined by FINRA for allowing eight of its brokers to engage in excessive trading in their customers\u2019 accounts. This practice is known as \u201cchurning,\u201d and it always costs a customer money.  From January 2015 to June 2020, Joseph Stone Capital and eight of its brokers engaged in excessive trading in several customer accounts and made considerable commissions for themselves and the firm. This caused the customers to over-pay and never see a return on their investments.  FINRA made the announcement on September 8, 2022, and levied a fine of $1.04 million against the firm. The firm also failed to create adequate Written Supervisory Procedures (WSPS) that complied with FINRA Rule 2111.\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg 300w, https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Broker-dealer Joseph Stone Capital (<a href=\"https:\/\/brokercheck.finra.org\/firm\/summary\/159744\" target=\"_blank\">CRD# 159744\/SEC# 8-69014<\/a>), based in Mineola, NY, has recently been fined by FINRA for allowing eight of its brokers to engage in excessive trading in their customers\u2019 accounts. This practice is known as \u201c<a href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\" target=\"_blank\">churning<\/a>,\u201d and it always costs a customer money. <a href=\"https:\/\/www.silverlaw.com\/blog\/brokerage-firm-fined-1m-for-churning-customers-may-file-finra-arbitration-claims\/#more-10814\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Broker-dealer Joseph Stone Capital (CRD# 159744\/SEC# 8-69014), based in Mineola, NY, has recently been fined by FINRA for allowing eight of its brokers to engage in excessive trading in their customers\u2019 accounts. This practice is known as \u201cchurning,\u201d and it always costs a customer money. Continue reading \u203a<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[589,588],"tags":[],"class_list":["post-10814","post","type-post","status-publish","format-standard","hentry","category-churning-2","category-finra-arbitration"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Brokerage Firm Fined For Churning, Customers May File Claims<\/title>\n<meta name=\"description\" content=\"Joseph Stone Capital has been fined by FINRA for allowing eight of its brokers to engage in excessive trading\/churning in customer accounts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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