FINRA, the Financial Industry Regulatory Authority (FINRA), has barred Jack Stone (CRD#: 437327), formerly a registered representative with Forest Securities, from the securities industry. According to his BrokerCheck record accessed on September 17, 2019, he entered into an Acceptance, Waiver, and Consent (AWC) consenting to the entry of findings that he “he refused to appear for FINRA on-the-record testimony in connection with an investigation into his securities activities while at his member firm, including possible misrepresentations to customers, use of discretion, and unauthorized transactions.”
This is far from the only disclosure on Jack Stone’s BrokerCheck record. This is an update to our previous article on Jack Stone. On August 23, 2017, Jack Stone became involved in a pending customer dispute; a client alleges that Jack Stone engaged in “churning, unauthorized trading, fraud, [and] breach of fiduciary duty.” The client is requesting $5,001 in damages.
On March 28, 2011, Jack Stone became involved in a customer dispute in which a client alleged that, while a broker at Forest Securities in Hillside, Illinois, he recommended unsuitable investments, breached his fiduciary duty, breached contract, and engaged in churning. The client requested $350,000 in damages, and the dispute was ultimately settled for $100,000.
After a client raised concerns about a bond ladder investment strategy, Jack Stone became involved in a dispute on January 4, 2008. The client requested $30,000 in damages; the matter was eventually settled for $26,233.93. A bond ladder involves staggering maturity dates so that an investor is not locked into one bond for a long time, allowing investors to diversify their investments.
On August 20, 2003, Illinois denied Jack Stone’s “application for registration as a salesperson in the state of Illinois.” He consented to “increased and heightened supervision until December 31, 2004.”
On June 21, 1999, the New York Stock Exchange opened a regulatory complaint against Jack Stone. Ten months later, on April 20, 2000, Jack Stone consented to the findings of a New York Stock Exchange hearing that he violated NYSE rules. The NYSE found that he “allocated trades from a firm proprietary account to his wife’s account without approval, effected purchases and sales for his wife’s account from and to a proprietary account at prices away from the market to the benefit of his wife’s account and to the detriment of the firm,” among other findings. As a result, he was barred for three years from membership in the NYSE. Subsequently, on May 19, 2000, he was permitted to resign from his position at Schwab Capital Markets L.P.
Over his 41-year career in the securities industry, Jack Stone worked for nine brokerage firms:
- Forest Securities, Inc. (CRD#: 16255) of Hillside, Illinois
- Birkelbach Investment Securities, Inc. (CRD#: 11490) of Chicago, Illinois – expelled by FINRA on January 5, 2015
- Direct Access Brokerage Services, Inc. (CRD#: 30057) of Chicago, Illinois
- Schwab Capital Markets L.P. (CRD#: 2692) of Stamford, Connecticut
- Gruntal & Co. Incorporated (CRD#: 372) of New York, New York
- Rodman & Renshaw Inc. (CRD#: 724) of Chicago, Illinois
- Haas Securities Corporation (CRD#: 2104)
- Mesirow & Company (CRD#: 2764)
- Pershing Securities Corporation (CRD#: 1599)
If Jack Stone was your broker or if you have questions about unauthorized trading or the bond laddering investment strategy, don’t hesitate to contact an experienced securities attorney. Call (877) 238-4175 or email firstname.lastname@example.org for your free consultation.