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 supported by findings of his excessive and unsuitable trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2019063821603 (November 5, 2021).
According to the AWC, from June of 2017 to May of 2018, during the period that May was registered with Joseph Stone Capital, he made unsuitable trades and excessive trades. This involved margin use, according to the regulator. The AWC states that twenty-one trades were made in the customer’s account because of May’s recommendations. May advised the customer on each trade.
FINRA indicated that the customer’s account contained $25,331.00 in average month-end equity. May recommended trades with a principal value exceeding $265,044.00. The customer’s account had an annualized turnover rate of ten and a cost-to-equity ratio of more than 40 percent. This caused the customer to be unable to avoid losses unless their account grew by 40 percent annually. May generated $10,349.00 between margin interest, commissions, and trading costs.
The regulator determined that May recommended trades in violation of FINRA Rules 2010 and 2111.
FINRA Public Disclosure shows that on July 7, 2016, a customer initiated investment related FINRA securities arbitration claim concerning May’s activities was settled to resolve allegations of May’s breach of fiduciary duty and unsuitable trading of over-the-counter equities in the customer’s account during the time that he was employed by Liberty Partners Financial Services LLC. FINRA Arbitration No. 16-01254. According to the claim, May made unauthorized trades resulting in damages.
May was associated with Joseph Stone Capital between July 7, 2015, and June 17, 2020, and between March 4, 2021, and October 7, 2021. He has been registered with VCS Venture Securities since October 4, 2021.
