Douglas Jarrett Rosenberg of Mineola, New York, a stockbroker currently registered with Joseph Stone Capital LLC, has been suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because of his excessive and unsuitable trading during the time that he was associated with Joseph Stone Capital. 2019063821605 (December 1, 2021).
According to the AWC, between June 2017 and May 2020, while associated with Joseph Stone Capital, Rosenberg unsuitably and excessively traded three customers’ accounts. Specifically, between June 2017 and January 2019, Rosenberg recommended that a customer make 47 transactions in his account. Those transactions had a total principal value of over $597,236.00 despite the customer’s month-end equity of approximately $12,077.00. This resulted in an annualized turnover rate of over 16. The customer was responsible for paying $18,137.00 in commissions, margin interest, and trading costs, which caused an annualized cost-to-equity ratio of over 94% in the customer’s account.
A separate customer was advised by Rosenberg to place 96 transactions in his account between December 2017 and March 2020. The customer’s account had an average month-end equity of $51,697.00, but Rosenberg recommended transactions with a total principal value of over $2,723,600.00. This resulted in an annualized turnover rate of more than 11. Additionally, $57,494.00 in commissions, margin interest, and trading costs were charged to the customer, resulting in an annualized cost-to-equity ratio of more than 49%. Therefore, Rosenberg violated FINRA Rules 2010 and 2111.
Public Disclosure shows that Rosenberg is referenced in four total customer initiated investment related disputes concerning Rosenberg’s conduct while associated with securities broker dealers, including First Midwest Securities Inc. Rosenberg is referenced in a customer initiated investment related complaint on June 19, 2007, in which the customer requested $30,000.00 in damages based upon allegations that Rosenberg made misrepresentations and unauthorized transactions with regard to the recommendation and sale of over-the-counter equities when Rosenberg was associated with Newbridge Securities Corp.
Rosenberg is the subject of an arbitration claim that was settled for $25,000.00 in damages based upon allegations that Rosenberg made misrepresentations, defrauded the customer, and engaged in excessive exchange-traded funds transactions when Rosenberg was associated with First Midwest Securities Inc. FINRA Arbitration No. 13-01211 (August 15, 2013).
On July 2, 2015, another arbitration claim involving Rosenberg’s conduct was settled for $236,403.00 in damages based upon allegations that Rosenberg misrepresented and omitted information, defrauded the customer, breached a fiduciary duty, acted negligently, and violated securities laws with regard to the recommendation and sale of options when Rosenberg was associated with First Midwest Securities Inc. FINRA Arbitration No. 12-02841.
Rosenberg has been associated with Joseph Stone Capital LLC since 2013. He was also associated with First Midwest Securities from 2008 to 2013 and Newbridge Securities Corp from 2006 to 2008.
