Joseph Stone Capital L.L.C. (“Joseph Stone Capital“) (CRD#159744) has faced numerous complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors who have suffered losses. If you’ve lost money investing with Joseph Stone Capital, you have legal options to recover those losses.
At the Law Offices of Robert Wayne Pearce, we have extensively investigated Joseph Stone Capital, analyzed its regulatory violations and customer complaints, and successfully represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors. Most investors can pursue their claims through FINRA arbitration, even if they signed an agreement that appears to waive their right to sue in court.
Joseph Stone Capital continues to face regulatory problems and remains in trouble, with the most recent FINRA violation occurring as recently as April 2025. The firm’s pattern of supervisory failures and compliance violations may have directly impacted your investments, giving you grounds to file a claim and recover your losses.
If Joseph Stone Capital or one of its advisors recommended unsuitable investments, engaged in excessive trading, or failed to supervise your account properly, you should not wait to take action. FINRA arbitration claims are subject to strict time limits, and delaying could result in losing your right to recover compensation for your investment losses.
Can I Sue Joseph Stone Capital?
Yes, you can sue Joseph Stone Capital if you have suffered investment losses caused by the firm’s misconduct, negligence, or fraudulent practices. However, most brokerage account agreements with Joseph Stone Capital require clients to pursue claims through FINRA arbitration instead of filing a traditional lawsuit in court. This means that while you technically cannot take Joseph Stone Capital to civil court, you can bring a legal action against the firm through arbitration, which is the industry-standard forum for resolving investor disputes.
How to Sue Joseph Stone Capital for Investment Losses
What Can I Do If I Lost Money at Joseph Stone Capital?
If you lost money at Joseph Stone Capital due to broker misconduct or the firm’s supervisory failures, you can file a FINRA arbitration claim to recover your losses. FINRA arbitration is a dispute resolution process specifically designed for investment-related complaints, and it’s often required by the account agreement you signed when opening your brokerage account. The process functions similarly to a court trial but is generally faster and less formal.
Joseph Stone Capital has a documented history of regulatory violations that may be directly connected to your losses. The firm has been sanctioned by FINRA for failing to supervise excessive trading, resulting in over $1,000,000 in customer commissions and fees. Additionally, state regulators have fined Joseph Stone Capital $305,000 for failing to supervise an agent on heightened supervision who caused at least $175,000 in losses to an elderly customer’s account. These supervisory failures created an environment where misconduct could occur unchecked.
Common claims against Joseph Stone Capital include unsuitable investment recommendations, excessive trading (churning), unauthorized transactions, failure to supervise, margin account abuse, and elder financial abuse. If your advisor engaged in any of these practices, you may have grounds to file a claim even if you signed an arbitration agreement. The agreement doesn’t prevent you from seeking compensation—it simply determines the forum where your case will be heard.
The arbitration process begins with filing a Statement of Claim that outlines your losses and the misconduct that caused them. Joseph Stone Capital will respond, and both sides will present evidence and testimony to a panel of arbitrators who will make a binding decision. Many cases also settle before reaching a hearing, as firms often prefer to avoid the expense and publicity of arbitration.
Who Can Help Me Sue Joseph Stone Capital?
An experienced securities arbitration attorney who understands Joseph Stone Capital’s specific compliance problems can build a stronger case by connecting the firm’s documented regulatory failures to your individual losses. The Law Offices of Robert Wayne Pearce has handled numerous cases involving independent broker-dealers with similar supervisory deficiencies, and we know how to hold these firms accountable for the damage their inadequate oversight causes to investors.
What is Joseph Stone Capital?
Joseph Stone Capital (CRD#159744) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Joseph Stone Capital is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Joseph Stone Capital In Trouble – Latest News
The company continues to experience ongoing regulatory issues. Most notably, FINRA fined Joseph Stone Capital $35,000 in April 2025 for failing to comply with the Taping Rule, representing their most recent regulatory violation. This demonstrates that the firm’s compliance problems persist well into 2025.
The current situation shows a pattern of continued supervisory failures. The 2025 taping rule violation is a new development, indicating ongoing regulatory oversight issues that extend beyond the firm’s historical violations.
Why Does Joseph Stone Capital Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Joseph Stone Capital often have more customer complaints because of how they’re structured. Unlike traditional brokerage firms with full-service branch offices, these firms operate through a franchise-type model designed to maximize profits while minimizing supervision costs.
The financial advisors at independent broker-dealers typically run their own separate businesses rather than working as employees. This means the firm doesn’t control them the same way a traditional employer would. These advisors often prioritize their own profits over investor protection because they face less day-to-day oversight.
Supervision at firms like Joseph Stone Capital comes from remote “Offices of Supervisory Jurisdiction” (OSJs) rather than on-site managers. The OSJ supervisors often run their own businesses and aren’t full-time supervisors. They can’t monitor daily operations, new accounts, individual trades, or client communications effectively from a distance. This creates gaps where misconduct can occur undetected.
Without immediate oversight, there’s no one on-site to catch forged signatures, inaccurate client information, unsuitable investment recommendations, or misleading sales materials. Many of these offices only receive one compliance audit per year, leaving investors vulnerable to fraud and negligence for extended periods.
The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at independent broker-dealers compared to traditional brokerage firms with on-site supervision. This pattern explains why firms like Joseph Stone Capital accumulate numerous regulatory violations and customer complaints over time.
Joseph Stone Capital Has Many Different Regulatory Problems
Joseph Stone Capital’s rapid growth has not been without consequences. There have been approximately 4 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) and the North American Securities Administrators Association (NASAA) for a violation(s) of investment-related rules or regulations.
In addition, there have been customer complaints filed against Joseph Stone Capital for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Joseph Stone Capital is a repeat offender: there are over 4 FINRA-reported proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Complaints and Regulatory Problems Joseph Stone Capital Has Faced Over the Years
Joseph Stone Capital has been repeatedly censured, warned, and fined for its own misconduct and failure to supervise its army of financial advisors. A few of the notable FINRA Sanctions for its Supervisory Failures are below:
FINRA Fines Joseph Stone Capital for Failure to Supervise Excessive Trading in Customer Accounts
Brief Overview: Without admitting or denying the findings, Joseph Stone Capital consented to the sanctions and to the entry of FINRA findings that it failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the suitability requirements of FINRA rule 2111 regarding excessive trading. FINRA stated that the firm’s written supervisory procedures did not provide reasonable guidance about how to identify accounts that were being excessively traded.
As a result, the firm failed on numerous occasions to identify accounts that had red flags of excessive trading, including accounts with cost-to-equity ratios greater than 20 percent. In total, the trading caused the customers to pay more than $1,000,000 in commissions, fees, and margin interest. As a result, the firm was censured and ordered to pay restitution exceeding $800,000.
New Hampshire Bureau of Securities Regulation Fines Joseph Stone Capital for Failure to Supervise Agent on Heightened Supervision
Brief Overview: The New Hampshire Bureau of Securities Regulation initiated an investigation into Joseph Stone Capital that revealed the firm failed to supervise and follow their own written procedures regarding an agent who was already on heightened supervision for previous regulatory actions. Because of such failure, the agent caused losses of at least $175,000 in an elderly and ill customer’s account while making high commissions for himself and Joseph Stone Capital. As a result, the firm was fined $305,000. The firm also paid $175,000 in disgorgement.
Commonwealth of Massachusetts Fines Joseph Stone Capital for Failure to Register Firm Principals
Brief Overview: The Commonwealth of Massachusetts initiated an investigation into Joseph Stone Capital that revealed since inception the firm failed to register two firm principals in charge of supervising registered representatives who were registered and conducting business in Massachusetts. In response, the firm stated it was unaware that individuals were acting as supervising principals and who were not transacting any securities business in Massachusetts were required to be registered. As a result, the firm was fined.
Montana Fines Joseph Stone Capital for Failure to Supervise Fraudulent and Unethical Practices by Salespeople
Brief Overview: The State of Montana initiated an investigation into Joseph Stone Capital that revealed the firm failed to supervise and knowingly provided substantial assistance to salespeople conducting fraudulent and unethical sales and manipulative practices. The sanctions against the firm included a monetary fine and restitution.
How to File an Official Complaint Against Joseph Stone Capital Advisor or One of Its Brokers with FINRA
If you are wondering how to file an official complaint against Joseph Stone Capital, LLC (CRD #159744) or one of its brokers with FINRA, it’s important to know that the firm has a history of regulatory actions, supervisory failures, and customer complaints. FINRA and state regulators have cited Joseph Stone Capital for issues such as unsuitable investment recommendations, excessive trading (churning), and inadequate oversight of its advisors, all of which have led to significant investor losses.
At the Law Offices of Robert Wayne Pearce, P.A., we have decades of experience representing investors in FINRA arbitration claims against brokerage firms like Joseph Stone Capital. These cases often involve claims of fraud, negligence, or breach of fiduciary duty, and pursuing them requires a strong legal strategy. Many investors mistakenly contact the firm directly, only to have their complaints denied or minimized.
These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Joseph Stone Capital without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
How The Law Offices of Robert Wayne Pearce, P.A. Can Help You Recover Losses at Joseph Stone Capital
The Law Offices of Robert Wayne Pearce, P.A. guides investors through every step of the FINRA complaint and arbitration process, from investigating your claim to presenting evidence at the hearing. With over 45 years of experience in FINRA arbitration proceedings, Attorney Robert Wayne Pearce knows how to hold firms like Joseph Stone Capital accountable and help investors recover their losses. We have recovered more than $175 million on behalf of defrauded investors over the decades.
Attorney Pearce offers a free initial consultation to evaluate your case and explain your legal options. If your advisor engaged in misconduct or if the firm’s supervisory failures contributed to your losses, we can build a strong claim to maximize your recovery.
Did Joseph Stone Capital Advisor Misconduct Cause You Investment Losses?
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Joseph Stone Capital cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
The Law Offices of Robert Wayne Pearce fights for victims of deceptive broker practices nationwide and in New York, Texas, and California.
Consult With An Attorney Who Recovers Investment Losses Caused By Joseph Stone Capital Today
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Joseph Stone Capital cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
The Law Offices of Robert Wayne Pearce fights for victims of deceptive broker practices nationwide and in New York, Texas, and California.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
