Todd Franklin Kling of Aventura, Florida, a stockbroker formerly registered with Joseph Stone Capital LLC, has been suspended for three months by Financial Industry Regulatory Authority (FINRA) from associating with any FINRA member in any capacity based upon allegations that Kling made unsuitable and excessive transactions. Letter of Acceptance, Waiver, and Consent No. 2019063821606 (December 17, 2021).
According to the AWC, between March 2018 and November 2019, while associated with Joseph Stone Capital LLC, Kling unsuitably and excessively traded a customer’s account. Specifically, Kling recommended that the customer make 115 transactions during this period. The transactions had a total principal value of more than $5,414,465.00 despite the customer’s account having an average month-end equity of $259,633.00. This resulted in an annualized turnover rate of over 12. In total, the customer was charged $153,879.00 in commissions, margin interest, and trading costs, which caused an annualized cost-to-equity ratio of over 35%. As a result, Kling violated FINRA Rules 2010 and 2111.
Kling was associated with Joseph Stone Capital LLC from 2016 to 2019 as a stockbroker. From 2015 to 2016, he was associated with Royal Alliance Associates Inc.
