Florida FINRA Arbitration Panel Awards $150,000 to Pair of Investors
On May 3rd, 2019, a FINRA arbitration panel in Tampa, FL awarded a pair of Florida investors $150,000 in compensatory damages (Case Number: 18-02823) after finding a former financial advisor liable for their losses. The respondent in the proceedings was Yosef Y. Fox (CRD#: 2386001), a previously registered securities broker who was barred from the industry in 2016.
Mr. Fox, who also goes by the first name ‘Joseph’, was most recently employer at Ditto Trade, Inc., a licensed broker-dealer that he owned and controlled. Here, our Miami investment fraud lawyers provide an overview of this FINRA arbitration proceeding and previous investor complaints against Yosef Fox.
FINRA Arbitration Panel: Allegations of Investment Fraud
In their claim, the pair of investors alleged that they sustained fraudulent investment losses after putting their money into Ditto Holdings, Inc. a company that was owned by Mr. Fox. After reviewing the documents and records submitted by the parties, the FINRA arbitration panel ruled in favor of the Florida investors, finding Mr. Fox liable. In total, the claimants were awarded $150,000 in compensatory damages along with reimbursement for their filing fees.
There Have Been Other Investor Complaints Against Former FINRA Broker Yosef Y. Fox
Yosef Y. Fox has faced multiple investor complaints in recent years. Notably, his brokerage firm, Ditto Trade, has been expelled from the securities industry. In 2015, the Securities and Exchange Commission filed a complaint against Mr. Fox. In it, the agency alleged that he violated federal securities laws in the sale of Ditto Holdings. In total, Yosef Fox is believed to have sold $1.25 million worth of unregistered securities in Ditto Holdings to approximately two dozen investors. Many of these investors were non-accredited, meaning they never should have been offered such a risky low priced security in the first place. Eventually, the SEC fined Mr. Fox $75,000, ordered him to pay financial restitution totaling $125,000, and banned him from engaging in penny stock offerings in the future.
Two other FINRA arbitration claims have also been filed against this broker. In 2017, Mr. Fox was ordered to pay $150,000 to an investor who suffered losses related to his negligence. In 2018, another investor claimed securities fraud related to an offering in Ditto Holdings. This claimant was awarded $634,250 in compensation. Financial Industry Regulatory Authority records indicate that neither of these arbitration awards was paid within the appropriate time frame. As this is a violation of securities industry rules, it resulted in further sanctions against Mr. Fox — he has now been permanently barred from the industry.
Consult With Our Miami, FL Investment Fraud Lawyers Today
At Carlson & Associates, P.A., our South Florida investment fraud attorneys fight tirelessly to help our clients hold negligent financial advisors accountable. If you lost money as a result of broker misconduct, our law firm will help you explore and pursue all available options for recovery. With a law office in Miami, we represent investors in FINRA arbitration claims and securities litigation throughout Florida.
Resources:
brokercheck.finra.org/individual/summary/2386001
finra.org/sites/default/files/aao_documents/18-02823.pdf