Eugene Arthur McAdams of Center Moriches, New York, a stockbroker formerly registered with Joseph Stone Capital LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because McAdams failed to comply with a FINRA investigation relating to his investment recommendations during the time that he was associated with Joseph Stone Capital LLC. Letter of Acceptance, Waiver, and Consent No. 2020066887801 (August 4, 2021).
According to the AWC, on June 17, 2020, McAdams’ former employer, Joseph Stone Capital LLC, filed a Form U5 indicating that McAdams voluntarily resigned from the firm. On July 7, 2021, FINRA requested that McAdams appear for on the record testimony concerning an investigation into the suitability of securities transactions that McAdams had recommended to customers while he was associated with Joseph Stone Capital LLC. Also, on July 7, 2021, McAdams, through his counsel, indicated that he had received FINRA’s request and that he would not testify at any time. Therefore, McAdams violated FINRA Rules 2010 and 8210.
FINRA Public Disclosure shows that McAdams is referenced in two customer initiated investment related disputes concerning McAdams’ conduct while associated with securities broker dealers, including Joseph Stone Capital LLC. On October 6, 2004, a customer initiated investment related complaint involving McAdams’ conduct was settled for $60,000.00 in damages based upon allegations that McAdams engaged in unauthorized trading in connection with the sale of securities when McAdams was associated with Milestone Financial Services Inc.
On May 15, 2019, another customer initiated investment related FINRA securities arbitration claim involving McAdams’ conduct was settled for $20,000.00 in damages based upon allegations that McAdams defrauded the customer, made false statements, engaged in excessive trading, and breached a fiduciary duty with regard to the recommendation and sale of over-the-counter equities when McAdams was associated with Joseph Stone Capital LLC. FINRA Arbitration No. 18-02038.
McAdams was associated with Joseph Stone Capital LLC from 2015 to 2020, Cape Securities Inc. from 2012 to 2015, and PHD Capital from 2010 to 2012.
