Joseph Ambrosole Investigation
September 2022- New York, NY
According to publicly available records, Joseph Ambrosole a former FINRA registered representative who last worked for Joseph Stone Capital, discloses 5 prior regulatory events , 2 prior customer disputes, a pending customer dispute and a tax lien .
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In April 2021, in FINRA case #2019061947601, Ambrosole consented to the sanctions and to the entry of findings that he excessively and unsuitably traded the accounts of two customers. The findings stated that the first account belonged to an elderly customer who began to sustain permanent, progressive and neurological and cognitive impairments. This customer’s account had an average monthly equity of approximately $300,000 and Ambrosole recommended and executed 157 trades which caused the customer to pay more than $126,000 in commissions and other trading costs. The second account belonged jointly with the first and had an average monthly equity of $70,000. Ambrosole recommended and executed 40 trades in this account which caused the customers to pay more than $20,400 in commissions and other trading costs. Ambrosole’s recommendations caused the customers to pay more than $147,000 in commissions and trading costs. Sanctions ordered were a 6 month suspension from FINRA, a $5,000 fine paid by Ambrosole personally and restitution of $147,031.50 also paid by Ambrosole personally.
In 7/2022 Ambrosole was permanently barred from the securities industry by FINRA after he refused to cooperate with a regulatory investigation related to a customer complaint alleging Ambrosole engaged in unsuitable trading.
In March 2021, the New Hampshire Bureau of Securities Regulation filed case# i-2020000017 alleging that Ambrosole engaged in heavy unsuitable trading which resulted in high commissions for himself and losses to his elderly and ill client of at least $175,000. Sanctions ordered were Cease and Desist, restitution of $175,000 to be paid by Ambrosole individually and a $130,000 fine to also be paid by Ambrosole.
In February 2017, in FINRA case # 2015047839902 Ambrosole consented to the sanctions and to the entry of findings that he executed five unauthorized trades in the account of a customer. The finding also stated that Ambrosole sold four securities owned by the customer and used to proceeds from those sales to purchase a UIT on behalf of the customer, all without the customer’s authorization. Sanctions were a one month suspension, restitution paid individually by Ambrosole and a $5,000 fine paid personally.
In August 2016, in FINRA case#2015047839901 Ambrosole failed to respond to FINRA request for information. Sanctions were a two month suspension from associating with FINRA member in any capacity.
In June 2021, State of Maryland, Office of Attorney General Division filed an Order to Show Cause directing Ambrosole to show cause why an order should not issue preventing him from engaging in activities of an agent of the state. Ambrosole was summarily suspended in the State of Maryland. This case is pending.
In August 2019 and in March 2018 two cases were filed by customers of Ambrosole’s former employer, Global Arena Capital Corp. alleging among other things, common law fraud, breach of fiduciary duty, negligence, breach of contract, churning, unsuitability and over concentration. The cases were collectively settled for $64,900 with $40,000 paid by Ambrosole individually.
In 7/2021 a customer of Joseph Stone Capital made a claim alleging that Ambrosole engaged in unsuitable trading from 2/2021-5/2021. The customer seeks damages of $853,231 in this currently pending matter.
In February 2017, an IRS tax lien was filed in Richmond County in the amount of $57,199 against Ambrosole.
If you have losses in an account handled by Joseph Ambrosole, call to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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