A Mineola-based broker from Port Washington has been disbarred and will be forced to pay over $350,000 in profits he and his firm made in commission using customer funds for high-end trades, according to the U.S. Securities and Exchange Commission.
A commission complaint filed on Aug. 13, 2020 in federal court alleged that Ross Barish engaged in unauthorized, high-cost trading with customer money between 2013 and July 2019, among other things.
Barish, 47, did not conduct reasonable due diligence to determine whether the strategy would return any profit for his customers, court documents alleged.
As part of the final judgment against Barish, obtained by the commission on Aug. 10, Barish must pay disgorgement, or illegally made profits, of $171,150.63, prejudgement interest of $16,984.46 and penalties of $171,150.63 for a total amount of $358,984.46.
Barish and his firm, Joseph Stone Capital, LLC on Old Country Road, netted over $400,000 in commissions while his 16 defrauded customers lost over $800,000, according to court documents.
Barish allegedly told customers he was an experienced broker but “did nothing more than buy stocks and sell them after a brief holding period,” the original complaint said. The Port Washington resident enriched himself by persuading customers “that profits were just around the corner,” according to the complaint.
The commission has barred Barish from acting as a broker, investment advisor, associating with firms that sell securities or provide investment advice, according to the Financial Industry Regulatory Authority.