Miguel Angel Murillo (also known as Michael Murillo) of New York, New York, a stockbroker currently registered with Joseph Stone Capital LLC, has been fined $5,000.00 and suspended for eight months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he engaged in unsuitable and excessive trading in Joseph Stone Capital LLC customer accounts. Letter of Acceptance, Waiver, and Consent No. 2020066887901 (August 31, 2022).
According to the AWC, from January 2015 to September 2019, while associated with Joseph Stone Capital LLC, Murillo unsuitably and excessively traded in a customer’s accounts. Specifically, Murillo make 35 transactions in their account between January 2017 and September 2019. The customer’s account had an average monthly equity of roughly $13,000.00. The transactions that Murillo recommended caused the customer to be charged $12,000.00 in commissions and trade costs and ultimately resulted in an annualized cost-to-equity ratio of over 38 percent.
Another customer placed 100 transactions because of Murillo’s advice between January 2015 and September 2018. The customer’s account had an average monthly equity of roughly $63,000.00. The recommendations Murillo made caused the customer to be charged over $39,000.00 in commissions and trade costs. This resulted in an annualized cost-to-equity ratio of over 25%. As a result, Murillo violated FINRA Rules 2010 and 2111.
Public Disclosure shows that Murillo is referenced in three total customer initiated investment related disputes concerning Murillo’s conduct while associated with securities broker dealers, including Aura Financial Services Inc. and Salomon Whitney Financial. On June 25, 2007, a customer filed an investment related complaint involving Murillo’s activities in which the customer requested compensatory damages based upon allegations that Murillo engaged in sales practice violations in connection with the recommendation and sale of securities when Murillo was associated with Aura Financial Services Inc.
On August 26, 2008, another customer initiated investment related complaint involving Murillo’s conduct was settled for $35,000.00 in damages based upon allegations that Murillo made misrepresentations and failed to follow instructions with regard to the recommendation and sale of over-the-counter equities when Murillo was associated with Aura Financial Services Inc.
Murillo is also the subject of a civil action that was settled for $250,000.00 in damages based upon allegations that Murillo defrauded the customer, breached a fiduciary duty, and made unsuitable and unauthorized transactions in connection with the recommendation and sale of equities when Murillo was associated with Salomon Whitney Financial. Civil Action No. 3:17-CV-01745-WGY (May 10, 2019).
Murillo has been associated with Joseph Stone Capital since 2014. From 2010 to 2014, he was associated with Salomon Whitney Financial. From 2009 to 2010, he was associated with Cape Securities Inc.
