Garrett Gaylor, formerly with Joseph Stone Capital, Barred by SEC
Have you lost money with financial advisor Garrett R. Gaylor from Huntington, New York? We are looking into allegations made by the Securities and Exchange Commission (SEC) against Garrett Gaylor. The SEC alleged that Gaylor engaged in a high-cost pattern of trading, also known as excessive trading or churning.
Gaylor was being investigated regarding allegations that he engaged in unsuitable and excessive trading (churning) in customers’ accounts. The SEC alleged that twelve of Gaylor’s customers had accounts with a cost-to-equity ratios averaging 75% while at Joseph Stone Capital. To put this in perspective, if an account had a cost equity ratio of 75%, that means the trading in the account would have to make a 75% profit annually just to break even from the costs of trading.
Garrett Gaylor was a registered representative and financial advisor with Joseph Stone Capital from September 2015 to April 2020. He worked out of a branch office in Huntington, New York. Gaylor has also been the subject of at least one customer complaint.
Broker-dealers like Joseph Stone Capital have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives. Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations. When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; Phoenix, Arizona; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including against Joseph Stone Capital.