The securities attorneys at Gana Weinstein LLP are currently investigating Joseph Stone Capital L.L.C. (Joseph Stone) broker Laurence Pettit (Pettit). According to BrokerCheck records, Pettit has been subject to 10 customer disputes, two civil actions, and one criminal action. The majority of these disputes allege Pettit’s improper use of discretion, unauthorized trading, improper use of margin, and failure to follow customer instructions.
In March 2009, a customer alleged that Pettit failed to follow instructions to liquidate the investments in the customers’ account on multiple occasions. The dispute was settled at $250,000.
In October 2008, a customer alleged that Pettit failed to follow the customer’s instructions to reduce the margin percentage on the account. This dispute was settled at $40,000.
In September 2008, a customer alleged that in 2007, Pettit misrepresented the material facts of Mad River Fund LP, a hedge fund investment.
In addition, Pettit was subject to two liens. In October 2015, Pettit was subject to a civil lien of $73,008. In February 2011, Pettit was subject to a civil lien $105,207.74. Large liens are potential signs that a broker is struggling to manage their finances. FINRA provides this information to the public because it is material for consumers to know whether or not their advisor’s financial situation influences the advisor’s recommendations. Continue Reading