John Fendrich Suspended by FINRA for Alleged Excessive Trading

John Fendrich (CRD #: 1791002), a broker registered with Joseph Stone Capital, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 28, 2025. Read on to learn more about his alleged conduct as a broker.

FINRA Suspension

On May 1, 2025, John Fendrich consented to the entry of findings that he allegedly recommended a series of excessive trades that were not in his client’s best interest.

According to a Letter of Acceptance, Waiver & Consent (AWC), Customer A allegedly had an investment objective of speculation. John Fendrich and another broker allegedly recommended 45 transactions to Customer A between September 2020 and November 2021 that resulted in an annualized turnover rate of 14 and an annualized cost-to-equity ratio of 64%.

This trading allegedly also resulted in $95,393 in realized losses and generated $28,428 in commissions.

Several factors are considered when evaluating excessive trading. A turnover rate above 6 and a cost-to-equity ratio over 20% are considered red flags.

The AWC concluded that these allegations constituted violations of Regulation Best Interest and FINRA Rule 2010.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2010

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

Sanctions

John Fendrich consented to the following sanctions:

• Three-month suspension from associating with FINRA members
• $5,000 fine
• Partial restitution of $14,214 plus interest

His suspension began on June 2, 2025, and will end on September 1, 2025. You can read the full AWC here.

Background Information

John Fendrich has passed the following exams:

• General Securities Principal Examination – Series 24
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

John Fendrich is a registered broker in eight states.

He has also worked for 15 firms in the past, including:

• Spartan Capital Securities (CRD#:146251)
• Dawson James Securities (CRD#:130645)
• Meyers Associates (CRD#:34171)
• J.P. Turner & Company (CRD#:43177)
• Kirlin Securities (CRD#:21210)
• J.W. Barclay & Company (CRD#:23350)
• Cantone Research (CRD#:26314)
• First Montauk Securities Corporation (CRD#:13755)
• Prudential Securities (CRD#:7471)
• Donald & Company Securities (CRD#:7776)

Kurta Law Can Help

If you worked with John Fendrich and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.