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 founded on findings that McAdams refused to testify for FINRA personnel who investigated whether McAdams made unsuitable recommendations to customers when he was associated with Joseph Stone Capital. Letter of Acceptance Waiver and Consent No. 2020066887801 (Aug. 4, 2021).
According to the AWC, the securities regulator investigated McAdams in 2021 regarding the suitability of his recommendations to Joseph Stone customers. He was asked by FINRA investigators to make an appearance and discuss the advice he gave to customers. The AWC stated that FINRA received an email from McAdams’ lawyer on July 7, 2021 relaying that McAdams knew of FINRA’s request and would not comply with it at any point. FINRA determined that McAdams violated Rule 8210 by refusing to testify. He was barred from the securities industry for this reason.
McAdams has been identified in two customer initiated investment related disputes concerning accusations of his wrongdoing when he was associated with Milestone Financial Services and Joseph Stone Capital. FINRA Public Disclosure states that a customer initiated investment related complaint regarding McAdams’ activities was resolved for $60,000.00 in damages founded on allegations that unauthorized over-the-counter equities trades were executed in the customer’s account by McAdams at Milestone Financial Services.
On May 15, 2019, another customer initiated investment related FINRA securities arbitration claim concerning McAdams’ conduct was settled for $20,000.00 in damages supported by accusations that McAdams breached a fiduciary duty to the customer in reference to over-the-counter equities. FINRA Arbitration No. 18-02038. McAdams allegedly made negligent misrepresentations regarding his securities transactions at Joseph Stone Capital. According to the claim, misleading and false statements had been made by him. Trades were also allegedly inappropriately effected by McAdams using margin. The claim also contains allegations of excessive trading and elder abuse by McAdams.
McAdams’ registration with Joseph Stone Capital was terminated on June 17, 2020. He has been associated with three different securities broker dealers which have been expelled by regulators for violation of federal securities laws or are otherwise defunct.