Joseph Albert Ambrosole of New York, New York, a stockbroker formerly registered with Joseph Stone Capital LLC, has been barred from associating with any FINRA member in any capacity based upon allegations that Ambrosole failed to cooperate in a FINRA investigation. Letter of Acceptance Waiver and Consent No. 2021072773201 (July 28, 2022).
According to the AWC, on June 29, 2021, Joseph Stone Capital filed a Uniform Termination Notice (Form U5) concerning Ambrosole, indicating to FINRA that he had resigned from the securities broker dealer for allegedly engaging in unsuitable trading from February 2021 to May 2021. On June 17, 2021, in connection with FINRA’s investigation into Ambrosole’s activities, a request was sent for Ambrosole to appear for on-the-record testimony. On July 8, 2022, through his counsel, Ambrosole indicated that he had received FINRA’s request but would not appear for testimony at any time. Ambrosole violated FINRA Rules 2010 and 8210 as a result.
This is not the first time that Ambrosole has been the subject of a regulatory action concerning their conduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Ambrosole has been fined $5,000.00 and suspended for six months from associating with any FINRA member in any capacity based upon allegations that Ambrosole recommended excessive transactions. Letter of Acceptance Waiver and Consent No. 2019061947601 (Apr. 7, 2021).
According to the AWC, between December 2017 and June 2020, Ambrosole unsuitably and excessively traded the accounts of two customers while he was associated with Joseph Stone Capital.
Customer A was 78 years old when the account was first opened and later suffered from progressive permanent neurological impairments. Ambrosole recommended and effectuated 157 transactions which resulted in Customer A being charged more than $126,000.00 in commissions. That account had an annualized cost-to-equity ratio of roughly 20%.
A different account was held by Customer A and his wife, who was also elderly with limited investment experience and knowledge. From July 2019 to June 2020, Ambrosole recommended and effected 40 transactions in this account, resulting in the customers being charged over $20,400.00 in commissions. The annualized cost-to-equity ratio in this account was approximately 35%. Due to the excessive and unsuitable recommendations, Ambrosole violated FINRA Rules 2010 and 2111.
Public Disclosure shows that Ambrosole is referenced in three total customer initiated investment related disputes concerning Ambrosole’s activities while associated with securities broker dealers, including Joseph Stone Capital LLC and Global Arena Capital Corp.
On March 28, 2019, a customer initiated investment related FINRA securities arbitration claim involving Ambrosole’s conduct was settled for $54,900.00 in damages based upon allegations that Ambrosole had churned their account and made unsuitable leveraged exchanged traded funds transactions when Ambrosole was associated with Global Arena Capital Corp. FINRA Arbitration No. 18-01555.
On May 30, 2019, a different arbitration claim involving Ambrosole’s activities was settled for $10,000.00 in damages based upon allegations that Ambrosole breached a contract, breached a fiduciary duty, acted negligently, and committed fraud with regard to the recommendation and sale of over-the-counter equities at Global Arena Capital Corp. FINRA Arbitration No. 18-02590.
Ambrosole is also referenced in a customer initiated investment related complaint on July 30, 2021, in which the customer requested $853,231.33 in damages based upon allegations that Ambrosole made unsuitable transactions when Ambrosole was associated with Joseph Stone Capital LLC.
From 2017 to 2021, Ambrosole was associated with Joseph Stone Capital LLC. In 2017, he was associated with Alexander Capital LP. From 2015 to 2016, he was associated with Meyers Associates LLP.
