Sebastian Wyczawski of Mineola, New York, a stockbroker formerly registered with Joseph Stone Capital LLC, has been fined $5,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because he executed excessive and unsuitable transactions during the time that he was associated with Joseph Stone Capital LLC. Letter of Acceptance, Waiver, and Consent No. 2019063821602 (November 5, 2021).
According to the AWC, between June 2016 and September 2017, while associated with Joseph Stone Capital LLC, Wyczawski unsuitably and excessively traded in two customer accounts. Specifically, Wyczawski recommended that a customer place 20 transactions between June 2016 and January 2017. Despite the customer’s account having an average month-end equity of roughly $51,340.00, Wyczawski made trade recommendations with a total principal value of over $528,759.00. This resulted in an annualized turnover rate of over 17. The customer had to pay $10,397.00 in commissions, trading costs, and interest as a result of Wyczawski’s recommendations.
Another customer was placed in a similar situation as a result of Wyczawski’s recommendations. 45 transactions were placed with a total principal value of over $300,524.00, even though the customer had an average month-end equity of about $14,831.00. These transactions caused the customer to pay $11,247.00 in commissions, margin interest, and trading costs and resulted in an annualized cost-to-equity ratio of over 65%. As a result, Wyczawski violated FINRA Rules 2010 and 2111.
Wyczawski is also the subject of a customer initiated investment related complaint that was settled on June 10, 2004, for $37,500.00 in damages based upon allegations that Wyczawski made unauthorized transactions with regard to the recommendation and sale of over-the-counter equities when Wyczawski was associated with Milestone Financial Services Inc.
Wyczawski 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.
