Lenny Yurovsky Suspended by FINRA for Alleged Excessive Trading
Lenny Yurovsky (CRD #: 4554905), a broker registered with Joseph Stone Capital, has been suspended by FINRA, according to his BrokerCheck record, accessed on March 6, 2023. If you have questions about his alleged conduct as a broker, read on.
Suspension by FINRA
On December 27, 2022, Lenny Yurovsky consented to the entry of findings that he allegedly engaged in excessive and unsuitable trading in two client accounts from June 2016 through November 2019.
A Letter of Acceptance, Waiver & Consent (AWC) alleged that Customers A and B relied on Lenny Yurovsky’s advice and accepted his trade recommendations during this period. The AWC alleged that Lenny Yurovsky recommended unsuitable and excessive trades to Customers A and B:
- Customer A: A farmer with limited investment experience. Lenny Yurovsky allegedly recommended 252 trades, resulting in $165,000 in commissions and other trading costs despite the client’s alleged average monthly equity of $158,600. This allegedly resulted in an annualized cost-to-equity ratio of approximately 30%.
- Customer B: A senior investor. Lenny Yurovsky allegedly recommended 41 trades, resulting in $10,600 in commissions and other costs despite Customer B’s alleged average monthly equity of $42,000. This trading allegedly resulted in an annualized cost-to-equity ratio of approximately 25%.
For comparison, a cost-to-equity ratio above 20% is considered a sign of excessive trading.
The AWC concluded that Lenny Yurovsky’s allegedly unsuitable and excessive trading violated FINRA Rules 2111 and 2010.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to recommend securities that sufficiently suit an investor’s financial goals. Brokers must consult the information contained in an investor’s profile, such as their tax status, risk tolerance, and age.
Excessive trading violates the need for quantitative suitability. This means that overall trading activity must also suit an investor’s goals.
Investors who rely on brokers for recommendations may be able to recover their losses through FINRA arbitration.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Lenny Yurovsky consented to the following sanctions:
- Restitution of $10,648.61
- Five-month suspension
His suspension began on January 17, 2023, and will end on June 16, 2023.
You can read the full AWC here.
Background Information
Lenny Yurovsky has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
Lenny Yurovsky is a registered broker in 15 states.
He has also worked for the following firms:
- PHX Financial (CRD#:144403)
- National Securities Corporation (CRD#:7569)
- John Thomas Financial (CRD#:40982)
- Laidlaw & Company (UK) (CRD#:119037)
- GunnAllen Financial (CRD#:17609)
- J.P. Turner & Company (CRD#:43177)
- LaSalle ST Securities (CRD#:7191)
- Brookstreet Securities Corporation (CRD#:14667)
- Raike Financial Group (CRD#:38095)
- S.W. Bach & Company (CRD#:43522)
- HSBC Brokerage (USA) (CRD#:6956)
- American Express Financial Advisors (CRD#:6363)
- IDS Life Insurance Company (CRD#:6321)
Kurta Law Can Help
If you worked with Lenny Yurovsky 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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