Joseph Albert Ambrosole of New York New York a stockbroker formerly registered with Joseph Stone Capital LLC has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Ambrosole recommended unsuitable and excessive transactions in customer accounts. Letter of Acceptance Waiver and Consent No. 2019061947601 (Apr. 7, 2021).
According to the AWC, from December of 2017 to June of 2020, Ambrosole engaged in excessive trading in two customers’ accounts. The AWC stated that the first account had been owned by an elderly investor. Before Ambrosole’s trading took place, the customer sustained permanent cognitive and neurological impairments. Their account had approximately $300,000.00 in average monthly equity. Enter Ambrosole who recommended and executed 157 trades in the customer’s account. This led the customer to pay $126,000.00 between commissions and trading costs. The stockbroker’s recommendations led the customer’s account to contain an annual cost-to-equity ratio of 20 percent.
The second account was owned by that elderly customer and his spouse who had little investment experience. Their account had an average monthly equity of $70,000.00 before Ambrosole came along. Between July of 2019 and June of 2020, 40 trades had been recommended and effected by Ambrosole. This produced $20,400.00 between commissions and trading costs. That account contained an annual cost-to-equity ratio of 35 percent. For the customer to be able to break even, their account needed to grow by more than 35 percent annually.
The customers depended on the advice that Ambrosole provided. They confided in his recommendations. But this resulted in them paying $147,031.50 in commissions and trading costs. FINRA determined that the customers’ investment profiles rendered Ambrosole’s transactions unsuitable and excessive. He violated FINRA Rules 2010 and 2111 for this reason.
This is not the first time that Ambrosole has been sanctioned by a securities regulator. He was fined $130,000.00 by New Hampshire Bureau of Securities Regulation and ordered to cease and desist violating New Hampshire securities laws based upon allegations of unsuitable trading which caused his customers to sustain $175,000.00 in losses. Case No. I-2020000017 (Mar. 15, 2021).
He has also been suspended by FINRA supported by findings that he made unauthorized trades involving unit investment trusts at Meyers Associates LP. Letter of Acceptance Waiver and Consent No. 2015047839902 (Feb. 15, 2017).
FINRA Public Disclosure confirms that Ambrosole has been identified in additional customer initiated investment related disputes regarding accusations of his improprieties during the period that he was employed by Global Arena Capital Corp (GACC). A customer initiated investment related FINRA securities arbitration claim regarding Ambrosole’s activities was resolved for $54,900.00 in damages founded on allegations of unsuitable trading and churning of leveraged exchange traded funds in the customer’s account. FINRA Arbitration No. 18-01555 (Mar. 28, 2019).
Ambrosole is the subject of another customer initiated investment related FINRA securities arbitration claim which was settled for $10,000.00 in damages based upon accusations of breach of contract and breach of fiduciary duty by Ambrosole as it pertained to over-the-counter equities trades that he executed in the customer’s GACC account. FINRA Arbitration No. 18-02590 (May 30, 2019). The claim also alleges negligence and fraud.
Ambrosole has been registered with Joseph Stone Capital since November 9, 2017.
