The NH Bureau of Securities Regulation settled its case against New York based broker-dealer Joseph Stone Capital and its agent Joseph Ambrosole. As part of the settlement, Joseph Stone Capital and Ambrosole together were ordered to pay restitution of $175,000 to the estate of the NH investor, who has since passed away, as well as a fine of $100,000 and the Bureau’s costs of $30,000.
The Bureau’s case involved unsuitable trading by Ambrosole in the account of an elderly person from Lebanon, NH, that generated losses of at least $175,000 while Ambrosole made over $150,000 in commissions for himself and Joseph Stone Capital. Ambrosole has since withdrawn his registration as a broker-dealer agent in the state and is no longer licensed in NH.
The significant losses and high commissions that Ambrosole and Joseph Stone Capital caused occurred between December 2017 and August 2020, at a time where medical records suggest that the client began suffering from neurological, mental, and cognitive issues. The Bureau’s action also cites Joseph Stone Capital for failing to supervise Ambrosole, who himself was already on heightened supervision for previous regulatory actions in other states.
Brian Linares, a staff attorney who worked on the case, stated, “The conduct that occurred here was plainly unacceptable, and only made worse by the fact that the victim was an elderly gentleman with serious medical issues... The Bureau will continue to pursue out of state agents who violate the law and the firms that fail to supervise them.”