Adam Maggio of Mineola, New York, a stockbroker currently registered with Joseph Stone Capital LLC, is the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested $2,087,663.24 in damages based upon allegations that Maggio made unauthorized and unsuitable transactions, churned the customer’s account, acted negligently, and breached a contract and fiduciary duty in connection with the recommendation and sale of over-the-counter equities when Maggio was associated with Joseph Stone Capital LLC. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-03107 (January 3, 2022).
Public Disclosure shows that Maggio is referenced in four total customer initiated investment related disputes concerning his conduct while associated with securities broker dealers, including J.P. Turner Company LLC. On January 19, 2010, a customer initiated investment related FINRA securities arbitration claim involving Maggio’s conduct was settled for $14,999.99 in damages based upon allegations that Maggio made unauthorized and unsuitable transactions with regard to the recommendation and sale of over-the-counter equities when Maggio was associated with J.P. Turner Company LLC. FINRA Arbitration No. 09-00269.
On February 8, 2011, another arbitration claim involving Maggio’s conduct was settled for $43,750.00 in damages based upon allegations that Maggio defrauded the customer, breached a fiduciary duty, made misrepresentations, acted negligently, and engaged in excessive trading in connection with the recommendation and sale of options when Maggio was associated with J.P. Turner Company LLC. FINRA Arbitration No. 10-01421.
Maggio has also been fined $5,000.00 and suspended from associating with any FINRA member in any principal capacity because he failed to supervise stockbrokers’ trading activities in customer accounts. Letter of Acceptance, Waiver, and Consent No. 2019063821601 (December 10, 2021).
According to the AWC, from January 2015 to June 2020, while associated with Joseph Stone Capital LLC, Maggio failed to reasonably supervise transactions in customer accounts for excessive activity. Maggio did not identify red flags associated with excessive trading, and when he was made aware of those red flags, he failed to install procedures that would stop the misconduct.
Specifically, one customer was charged over $12,000.00 in commissions during the first ten months the account was opened, which caused a cost-to-equity ratio of more than 27 percent. Maggio mistakenly believed the cost-to-equity ratio was closer to 14% through his manual calculation but failed to read the report, which stated the actual figures.
A separate customer had been charged over $7,800.00 in commissions and had a cost-to-equity ratio of over 25, according to a June 30, 2017 report. Maggio failed to read that report as well. Once Maggio was made aware of the reports, he began to restrict the commissions that firm representatives could charge on individual transactions. Maggio did not restrict, however, the aggregate costs and commissions charged to the affected accounts. This allowed firm representatives to continue making frequent transactions and charge aggregate commissions. Therefore, Maggio violated FINRA Rules 2010 and 3110.
Maggio has been associated with VCS Venture Securities since 2021. Since 2013, he has been associated with Joseph Stone Capital as a stockbroker. From 2008 to 2013, he was associated with First Midwest Securities Inc.
