Chris Gallo, Joseph Stone Broker, Suspended by FINRA
Chris Gallo (CRD# 6045888), a broker registered with Joseph Stone Capital, recommended excessive transactions to retail customers, according to a disciplinary action. MDF Law is investigating the New York City-based financial professional for similar conduct. If you have concerns about investments in your accounts, call us for a free consultation with our team.
To learn more about Mr. Gallo’s history as a broker, continue reading this post. The information below is sourced from his BrokerCheck profile, a Financial Industry Regulatory Authority record examined on January 27, 2025.
Sanction Alleges Excessive Trades
On November 27, 2024, FINRA published a Letter of Acceptance, Waiver, and Consent (# 2018056490321) outlining its disciplinary action against Mr. Gallo. As it alleges, he recommended “a series of trades that were excessive and not in the customers’ best interests'” to two retail customers. The alleged trades took place between June 30, 2020 and November 2021. One of the customers, FINRA found, was 73 years old, while the other was a 54-year-old retiree. Both had speculation as their investment objectives.
In the 54-year-old customer’s account, per FINRA, he recommended 54 transactions that resulted in an annualized turnover rate of 14 and a cost-to-equity ratio of 64 percent. In addition, FINRA alleged, his trades led to commissions of $28,428 and realized losses of $95,393. As for the 73-year-old customer, per FINRA, he recommended 120 transactions that resulted in an annualized turnover rate of 16 and a cost-to-equity ratio of 80 percent. In addition, FINRA alleged, his trades led to commissions of $69,553 and realized losses of $109,099.
Broker Suspended for 5 Months
As FINRA’s AWC Letter alleged, Mr. Gallo’s trading was not in the customers’ best interests. As such, FINRA found that the trades violated Regulation Best Interest. This SEC rule requires brokers to recommend transactions in the best interest of their customers. They may not place their own financial interest ahead of the customers, per the rule. The Letter also notes that an annualized turnover rate of six or more “generally indicates” excessive transactions. So does a cost-to-equity ratio exceeding 20 percent, it adds.
Finding that Mr. Gallo violated Reg BI as well as FINRA Rule 2010, FINRA suspended him from associating with any broker-dealer firm in all capacities for five months. “In light of [his] financial status,” the letter adds, “no monetary sanctions have been imposed.”
FINRA: Chris Gallo Based in NYC
Mr. Gallo started his career as a broker in 2018, according to his BrokerCheck profile. That year, he registered with Spartan Capital Securities’ office in New York City. He remained at the firm until May 2023, when he joined Joseph Stone Capital’s New York office. Though he is still registered with Joseph Stone, per his BrokerCheck profile, he has been suspended from acting as a broker. With six years of experience in the industry, he has passed three securities industry qualifying exams, including the SIE and the Series 7.
Investment Losses? Call MDF Law Today
If you lost money on excessive or unsuitable trades recommended by Chris Gallo, you may have grounds to file a FINRA arbitration claim. Call MDF Law to chat with one of our investment fraud attorneys for free. We accept cases on a contingency basis, which means that clients only pay a fee if they recover lost funds. Call 800-767-8040 for a free consultation today.