Switch to ADA Accessible Theme
Close Menu
Free Consultation: 888-976-6111

Center Moriches Rep Eugene McAdams Barred: Suitability Allegations

The Financial Industry Regulatory Authority has barred former Joseph Stone Capital broker Eugene McAdams (CRD# 4190211) after finding he declined to cooperate with a probe into allegations of unsuitable trading. He was previously registered with Joseph Stone’s office in Center Moriches, New York.

According to a Letter of Acceptance, Waiver and Consent (No. 2020066887801) dated August 3, 2021, Eugene McAdams was registered with Joseph Stone Capital as a General Securities Representative from 2015 until his voluntary resignation in 2020, disclosed by the firm on June 17. FINRA states that on July 7, 2021, it sent him a request to appear for on-the-record testimony as part of its “investigation into the suitability of McAdams’s recommended securities transactions in customers’ accounts.” However, rather than provide the testimony, Mr. McAdams indicated via counsel on July 7 that he would not appear for the requested testimony “at any time.” FINRA found that this refusal violates FINRA Rule 8210, which stipulates that persons under FINRA’s jurisdiction may not fail to provide requested testimony related to matters under FINRA’s investigation As a result of these findings, FINRA barred Mr. McAdams from associating with any FINRA member in all capacities.

There are two customer complaints listed on Eugene McAdams BrokerCheck report, both of which reached settlements. The most recent complaint was filed in 2018 and alleged that as a representative of Joseph Stone Capital, he made excessive and unnecessary margin trades, committed elder abuse, provided false and misleading statements, committed fraud, negligently misrepresented material facts, and breached his fiduciary duty. In 2019 the complaint reached a settlement of $20,000, with Eugene McAdams making a statement on the disclosure that he denied the claims against him.

The previous complaint was filed in 2004 and alleged that as a representative of Milestone Financial Services, Eugene McAdams made unauthorized transactions. The complaint reached a settlement of $60,000.

According to the Financial Industry Regulatory Authority, Eugene McAdams holds 19 years of securities industry experience. His previous registrations include Joseph Stone Capital (Center Moriches, New York), Cape Securities (Lake Grove, New York), PHD Capital (New York, New York), Brookstone Securities (Uniondale, New York), America’s Choice Equities (Lake Grove, New York), JP Turner & Company (Medford, New York), ITradeDirect.com Corp. (Hauppage, New York), Emmett A. Larkin & Company (Bohemia, New York), JP Turner & Company (Medford, New York), IDS life Insurance Company and American Express Financial Advisors (Minneapolis, Minnesota), Newbridge Securities Corporation (Boca Raton, Florida), and Gunnallen Financial (Tampa, Florida). His credentials include the passage of three securities industry qualifying examinations: the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He presently holds no state licenses. (Information accessed on December 17, 2021.)

Facebook Twitter LinkedIn
Contact Us For A Free Case Evaluation
Latest Blog Posts
  • Kevin McCallum: Birmingham LPL Rep Suspended over BDCs

    Former Birmingham stockbroker Kevin McCallum (CRD# 2222586) was recently sanctioned by the Financial Industry Regulatory Authority. A former representative of...

    Read More
  • NYC Rep Christopher Orlando Barred over Excessive Trading Allegations

    Christopher Orlando (CRD# 4136262), previously a stockbroker based in New York City, has been sanctioned by the Financial Industry Regulatory...

    Read More
  • George McCaffrey: Ex-NTB Rep Barred over Private Transactions

    Ex-Englewood stockbroker George McCaffrey (CRD# 847377) was recently sanctioned by the Financial Industry Regulatory Authority and barred from acting as...

    Read More
  • Nathan Katz Barred by FINRA, Fired by American Independent Securities

    Former Largo, Florida stockbroker Nathan Katz (CRD# 846475) was the subject of a recent Financial Industry Regulatory Action sanction connected...

    Read More
  • Previous
  • Next