Joseph Steward Suspended by FINRA for Alleged Excessive Trading

Joseph Steward (CRD #: 3241331), a broker registered with PHX Financial, has been suspended by FINRA, according to his BrokerCheck record, accessed on June 22, 2025. If you want to know more about his alleged conduct as a broker, read on.

FINRA Suspension

On May 6, 2025, Joseph Steward consented to the entry of findings that he allegedly recommended a series of trades to a client that were excessive, unsuitable, and not in their best interest.

According to a Letter of Acceptance, Waiver & Consent (AWC), the client allegedly routinely followed Joseph Steward’s trading recommendations, giving him de facto control over the client’s account. The client allegedly had an investment objective of aggressive growth and income.

Between October 2019 and October 2021, Joseph Steward allegedly recommended 76 trades that generated $25,939 in commissions and resulted in $24,568 in realized losses. These transactions allegedly also led to an annualized turnover rate of 32 and an annualized cost-to-equity ratio of 142% in the client’s account.

Whether trading is excessive is determined using several factors. A cost-to-equity ratio above 20% and a turnover rate over 6 are considered signs of excessive trading.

The AWC concluded that these allegations constituted violations of Regulation Best Interest and FINRA Rules 2111 and 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 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which contains information about their investing experience, age, tax status, risk tolerance, and other characteristics.

Investors who rely on brokers for recommendations may be able to recover their losses by seeking out FINRA arbitration.

FINRA Rule 2010

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

Sanctions

Joseph Steward consented to the following sanctions:

• Five-month suspension from associating with FINRA members
• Partial restitution of $6,000

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

Background Information

Joseph Steward has passed the following exams:

• Investment Banking Registered Representative Examination – Series 79TO
• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Securities Agent State Law Examination – Series 63

Joseph Steward is a registered broker in six states.

He has worked for 14 firms in the past, including the following:

• Spartan Capital Securities (CRD#:146251)
• Legend Securities (CRD#:44952)
• Dawson James Securities (CRD#:130645)
• Coastal Equities (CRD#:23769)
• John Carris Investments (CRD#:145767)
• Joseph Gunnar & Company (CRD#:24795)
• Westrock Advisors (CRD#:114338)
• First Merger Capital (CRD#:44083)
• Seaboard Securities (CRD#:755)
• VFinance Investments (CRD#:44962)

Kurta Law Can Help

If you worked with Joseph Steward 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.