Investors Seek $2 Million in Disputes with David Stone

David Stone (CRD #: 4219856), a broker registered with Stifel, Nicolaus & Company, allegedly engaged in fraud, according to his BrokerCheck record, accessed on November 24, 2024. Keep reading if you have questions regarding his alleged conduct. 

Investor Disputes

On October 2, 2024, multiple investors filed a dispute alleging that David Stone engaged in fraud and negligence, breached his contract, violated the Florida Securities and Investor Protection Act and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5. They seek $1 million in damages in this pending dispute.

On October 11, 2023, investors alleged that David Stone engaged in negligence, fraud, and breach of contract. They also alleged he violated the New Jersey Uniform Securities Law and the Florida Securities and Investor Protection Act. They seek $1 million in damages. 

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 prohibits the use of deceptive, manipulative, and otherwise fraudulent practices relating to the purchase and sale of securities. Within this section, Rule 10b-5 prohibits fraudulent schemes, as well as untrue statements and misleading omissions of fact.

Section 20(a) makes liable every person controlling a person accused of violations. In other words, supervisors responsible for detecting and preventing violations of securities laws can be considered responsible for the violations of the brokers they supervise.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

What is Broker Negligence?

Many types of broker misconduct may qualify as negligence. Typical examples include unsuitable investment recommendations, misrepresentations or omissions of material fact, and failure to follow instructions.

What are Blue Sky Laws?

Blue sky laws are state securities regulations that provide investors with an extra layer of protection against fraud. They frequently also define what investments qualify as securities in the state.

Background Information 

David Stone has passed the following exams:

• Series 66 Uniform Combined State Law Examination
• Series 63 Uniform Securities Agent State Law Examination 
• SIE – Securities Industry Essentials Examination 
• Series 31 Futures Managed Funds Examination 
• Series 7 General Securities Representative Examination 

He is a registered broker in 36 states, D.C., and Puerto Rico. He is a registered investment adviser in Florida, New Jersey, New York, and Texas. 

David Stone has registered with the following firms: 

• Stifel, Nicolaus & Company (CRD #: 793) 
• Morgan Stanley (CRD #: 149777) 
• Citigroup Global Markets (CRD #: 7059) 
• Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD #: 7691) 
• J.P. Morgan Securities (CRD #: 15733) 

Kurta Law Can Help 

If you have worked with David Stone and you have concerns about your investments, do not hesitate to contact us at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Do not let securities fraud go unchecked. Start your recovery process today.