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Andrew Edenbaum Faces Three-Month Suspension by FINRA

May 11, 2022 FINRA Fine

Andrew Edenbaum (CRD #: 3040543) was suspended by FINRA, according to his BrokerCheck record, accessed on May 5, 2022. If you want to know more about Andrew Edenbaum’s conduct as a broker, read on.

FINRA Suspension

On March 21, 2022, Andrew Edenbaum consented to the findings of an Acceptance, Waiver, and Consent (AWC) agreement which alleged that he participated in the sale of a variable annuity to a non-client who had been referred to him for investment advice.

The findings allege that Andrew Edenbaum did not have the required insurance license to sell a variable annuity between February and April 2020, and though he did not execute the sale himself, he did provide the investor with the variable annuity application and helped her complete it.

Further, the AWC alleges the individual invested $150,000 in the annuity, and Andrew Edenbaum advised her on how to allocate the investment among various indices.

Lastly, Andrew Edenbaum allegedly delivered the investor's instructions to the broker-dealer from whom he obtained the variable annuity application, provided additional instructions for wiring the investment funds to the annuity company, and instructed the investor to approach him with any questions about the investment.

The AWC concludes that these allegations constitute violations of FINRA Rules 3280 and 2010.

FINRA Rules 3280 and 2010

FINRA Rule 3280 mandates that brokers must provide their firms with written notice before they engage in any private securities transactions.

Violations of Rule 3280 and other FINRA regulations are frequently automatic violations of FINRA Rule 2010, which holds brokers to high standards of professional conduct.

Sanctions

Andrew Edenbaum consented to the following sanctions:

  • $10,000 fine
  • Three-month suspension from FINRA

His suspension began on April 18, 2022, and will end on July 17, 2022. You can read the full AWC here.

Fired from National Securities Corporation

On June 12, 2020, Andrew Edenbaum was fired from National Securities Corporation after allegedly violating firm rules regarding sales activities by soliciting an annuity product when his product license had lapsed.

Background Information

Andrew Edenbaum has passed the following exams:

  • Series 65 - Uniform Investment Adviser Law Examination
  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

He has also worked for the following firms:

  • Alliance Global Partners (CRD#:8361)
  • National Securities Corporation (CRD#:7569)
  • Oppenheimer & Company (CRD#:249)
  • Prime Charter (CRD#:25668)
  • Dean Witter Reynolds (CRD#:7556)

Kurta Law Can Help

If you worked with Andrew Edenbaum and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.