FINRA Bars Joseph Ambrosole
Joseph Ambrosole (CRD #: 5732488), a broker formerly registered with Alexander Capital, has been indefinitely barred by FINRA, according to his BrokerCheck record, accessed on September 12, 2022. If you want to know more about his conduct as a broker, read on.
2022 Bar by FINRA
On July 28, 2022, Joseph Ambrosole consented to the entry of findings that he allegedly refused to appear for on-the-record testimony related to a FINRA investigation into an amended Uniform Termination Notice for Securities Industry Registration (Form U5) filed by Joseph Stone Capital.
A Letter of Acceptance, Waiver, & Consent (AWC) alleges that this amended Form U5 stated that a client complaint alleged that Joseph Ambrosole engaged in unsuitable trading between February and May 2021.
The AWC concludes that Joseph Ambrosole’s alleged refusal to appear for testimony violates FINRA Rule 8210 and 2010.
Rules 8210 and 2010
FINRA Rule 8210 requires brokers to comply with FINRA requests for information, documents, and testimony.
Violations of this and other rules qualify as automatic violations of FINRA Rule 2010, which holds brokers to high standards of professional honor and just and equitable principles of trade.
Sanctions
Joseph Ambrosole was indefinitely barred by FINRA on July 28, 2022.
You can read a copy of the AWC here.
Investor Disputes
On July 30, 2021, an investor alleged Joseph Ambrosole placed unsuitable trades in their account between February and May 2021. The client seeks $853,231.33 in this pending dispute.
In a dispute filed on March 12, 2018, an investor named Joseph Ambrosole in allegations of overconcentration, churning, and other unspecified violations of suitability. The client sought $275,000 in damages and received a settlement of $54,900.
Rule 2111
FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile contains information about their age, risk tolerance, and financial goals.
Excessive trading (also known as churning) violates the requirement for quantitative suitability—that the overall trading activity in an account also suits an investor’s profile.
Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.
2021 FINRA Suspension
On April 7, 2021, Joseph Ambrosole consented to the entry of findings and he engaged in excessive and unsuitable trading in two clients’ accounts between December 2017 and June 2020.
An AWC alleges that Joseph Ambrosole executed an excessive number of trades in two accounts: one owned by Customer A, and one jointly owned between Customer A and Customer B. Both clients were seniors, and Customer A had allegedly begun to sustain “permanent, progressive, neurological and cognitive impairments” by the time of Joseph Ambrosole’s alleged conduct.
During the relevant period, Joseph Ambrosole allegedly recommended and executed 157 trades in Customer A’s account, resulting in $126,000 in commissions and other trading costs, resulting in an annualized cost-to-equity ratio of approximately 20%.
In the joint account, Joseph Ambrosole allegedly recommended and executed 40 trades, resulting in over $20,400 in commissions and trading costs with an annualized cost-to-equity ratio of approximately 35%.
For reference, FINRA considers a cost-to-equity ratio over 20% to be a sign of potentially excessive trading.
Customers A and B allegedly relied on Joseph Ambrosole for his advice and ultimately paid a total of $147,031.50 in commissions and trading costs during this period.
The AWC concludes that these allegations constitute violations of FINRA Rules 2111 and 2010.
Sanctions
Joseph Ambrosole consented to the following sanctions:
- $5,000 fine
- 6-month suspension
- Restitution of $147,031.50
Additionally, FINRA required that Joseph Ambrosole and/or a registered principal of Joseph Stone Capital certify to FINRA that the restitution was paid pursuant to a consent order issued by the New Hampshire Securities Division.
His suspension began on May 3, 2021, and ended on November 2, 2021.
You can read the full AWC here.
Regulatory Action by State of New Hampshire
On March 15, 2021, the New Hampshire Bureau of Securities Regulation alleged that Joseph Ambrosole engaged in unsuitable trading, resulting in high commissions for himself and losses of at least $175,000 for his ill and elderly client. New Hampshire imposed a fine of $130,000.
Tax Lien
On February 24, 2017, Joseph Ambrosole was penalized with a $57,199 tax lien.
2017 FINRA Suspension
On February 15, 2017, Joseph Ambrosole consented to the entry of findings that he allegedly executed five unauthorized trades in a client’s account between October 13 and 15, 2015.
An AWC alleges that Joseph Ambrosole sold four securities owned by a client in order to purchase a unit investment trust on the client’s behalf. This allegedly resulted in $645.97 in losses for the client.
The AWC concludes that this alleged conduct violated FINRA Rule 2010.
Sanctions
Joseph Ambrosole consented to the following sanctions:
- $5,000 fine
- One-months suspension
- Restitution of $645.97, plus interest
He was suspended from February 21 to March 20, 2017.
You can read the AWC here.
2016 FINRA Suspension
From September 9 to November 9, 2016, FINRA suspended Joseph Ambrosole for allegedly failing to respond to requests for information.
FINRA Rule 9552
FINRA Rule 9552 penalizes members who fail to respond to requests for information with a suspension, which may become an indefinite bar if the suspended member fails to request an end to their suspension.
Background Information
Joseph Ambrosole has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
In the past, he worked for the following firms:
- Alexander Capital (CRD#:40077)
- Meyers Associates (CRD#:34171)
- Joseph Stone Capital (CRD#:159744)
- Global Arena Capital Corporation (CRD#:16871)
- Laidlaw & Company (UK) (CRD#:119037)
- Obsidian Financial Group (CRD#:104255)
Kurta Law Can Help
If you worked with Joseph Ambrosole 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 and 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.
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