Michael James May of Mineola, New York, a stockbroker formerly registered with Joseph Stone Capital LLC, has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he made unsuitable and excessive transactions in customer accounts during the time that he was associated with Joseph Stone Capital LLC. Letter of Acceptance, Waiver, and Consent No. 2019063821603 (November 5, 2021).
According to the AWC, between June 2017 and May 2018, while he was associated with Joseph Stone Capital LLC, May unsuitably and excessively traded a customer’s account. Specifically, upon the recommendation of May, the customer made 21 transactions in his account. The customer had an average month-end equity of $25,331.00, but May recommended transactions with a total principal value of more than $265,044.00. This resulted in an annualized turnover rate of over 10. Based on May’s recommendations, the customer had to pay $10,349.00 in commissions, margin interest, and trading costs which caused an annualized cost-to-equity ratio of over 40%. As a result, May violated FINRA Rules 2010 and 2111.
Public Disclosure shows that May is also referenced in a customer initiated investment related complaint that was settled on July 7, 2016, for $5,000.00 in damages based upon allegations that May breached a fiduciary duty and made unauthorized and unsuitable transactions in connection with the recommendation and sale of over-the-counter equities when May was associated with Liberty Partners Financial Services LLC.
May has been associated with VCS Venture Securities since 2021. From 2015 to 2021, he was associated with Joseph Stone Capital. From 2010 to 2015, he was associated with Cape Securities Inc.
