David Gene Menashe of Mineola New York a stockbroker formerly employed by Joseph Stone Capital LLC is referenced in a customer initiated investment related arbitration claim in which the customer requested $50,000.00 in damages based upon accusations that (1) fiduciary duties were breached (2) the customer’s account was administered negligently (3) misrepresentations had been made by the stockbroker concerning over-the-counter equities transactions and (4) trades had been placed on margin in an excessive and unsuitable manner. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-02598 (July 19, 2018).
In addition, Menashe was fined $15,000.00 by the State of Montana’s Office of the Commissioner of Securities and Insurance founded on allegations that unauthorized stock trades were executed in the customer’s account, and one or more trades were effected by the stockbroker on an excessive basis. Case No. SEC-2016-124 (Apr. 20, 2017).
According to the regulator, in one case, fifty-two transactions had been initiated by Menashe in the account of Joseph Stone customer, RS. Allegedly, Menashe’s trading in the customer’s account produced sales of $2,646,295.46 and purchases of $2,650,549.30, amounting to a turnover rate exceeding eleven. Menashe executed all of those purchases and sales inside of thirty-three days, making $82,270.32 in commissions for himself and Joseph Stone. Menashe and the securities broker dealer made profits exceeding ninety-four percent on the initial investment made by RS. The Commissioner found Menashe’s conduct violative of Montana securities laws.
Menashe’s employment with Joseph Stone Capital has been terminated as of January 25, 2017. Between January 19, 2017 and February 21, 2019, Menashe was registered with Newbridge Securities Corporation. He has been associated with Benchmark Investments Inc. since February 25, 2019.
