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Andrew Elsoffer Faces Two-Year Suspension from FINRA

May 27, 2022 FINRA Fine

Andrew Elsoffer (CRD #: 2580009), a former broker, has been suspended from FINRA, according to his BrokerCheck record, accessed on May 19, 2022. Keep reading if you have questions about Andrew Elsoffer’s conduct as a broker.

FINRA Suspension

On February 25, 2022, Andrew Elsoffer agreed to sanctions imposed by an Acceptance, Waiver, and Consent (AWC) agreement. The AWC alleges the following:

  • Between February 14, 2012, and October 15, 2018, Andrew Elsoffer conducted unauthorized trading in five customer accounts.
  • Between May 15, 2018, and July 30, 2018, he loaned a total of $13,703 to a client.
  • Andrew Elsoffer made false statements to FINRA.

The AWC specifies that Andrew Elsoffer allegedly exercised his discretion in approximately 2,800 transactions across the five clients' accounts. These customers knew that he was exercising his discretion, but none had provided written authorization and the firm had not approved these accounts for discretionary trading.

Further, Andrew Elsoffer allegedly oversaw renovations to the home of a client while working for Stifel, Nicolaus & Company, violating firm policy forbidding brokers from lending to firm customers who are not immediate family members. He allegedly lent the client $13,703 to pay the contractors renovating the home.

The allegations continue, stating the client later reimbursed Andrew Elsoffer through three checks totaling $2,703 drawn from his firm account and two more checks totaling $11,000 drawn from his bank account. He allegedly did not seek prior approval from or disclose this loan to the firm.

Lastly, the AWC alleges that Andrew Elsoffer made multiple false statements in response to FINRA requests for information relating to his firing from Stifel, Nicolaus & Company. Specifically, the filing alleges that Andrew Elsoffer misrepresented which accounts the checks were drawn from and the number of checks written by the client.

The AWC concludes that these allegations violate NASD Rule 2510(b) and FINRA Rules 3240, 8210, and 2010.

FINRA Rule 3260 and NASD Rule 2510(b)

FINRA Rule 3260 restricts brokers from exercising their discretion in anything but pre-approved discretionary accounts. Accounts must be approved for discretionary trading by both the client and the firm. Trades placed in non-discretionary accounts without investor authorization are unauthorized and violate FINRA Rules. 

FINRA Rule 3240

FINRA Rule 3240 forbids brokers from lending to or borrowing from customers unless the transaction meets certain conditions, including receiving firm approval before the transaction occurs. Firms may also institute their own policies governing lending between brokers and clients.

FINRA Rule 8210 and 2010

FINRA Rule 8210 requires members to supply information, documents, and testimony upon request by FINRA staff.

Violations of many FINRA rules qualify as automatic breaches of FINRA Rule 2010, which requires that brokers maintain high standards of commercial honor.

Sanctions

Andrew Elsoffer consented to the following sanctions:

  • $15,000 fine
  • Two-year suspension from associating with FINRA members in all capacities

His suspension began on March 7, 2022, and will end on March 6, 2024.

You can read the full AWC filing here.

Discharge from Stifel, Nicolaus & Company

On October 16, 2018, Andrew Elsoffer was fired from Stifel, Nicolaus, & Company due to an alleged loss of confidence following the settlement of an arbitration relating to a violation of firm policy.

The arbitration concerned the allegation, detailed above, that Andrew Elsoffer received customer funds into an account of his own. 

Investor Disputes

On March 23, 2016, investors filed a dispute alleging that Andrew Elsoffer engaged in securities fraud, common law fraud, and misrepresentation; made unspecified violations related to suitability; committed elder abuse and exploitation; committed negligence; and breached his contract. The clients sought $2,250,000 in damages and received a settlement of $165,000.

In a dispute filed on February 17, 2016, an investor alleged Andrew Elsoffer recommended unsuitable investments between May 2, 2013, and September 18, 2015, resulting in losses. They sought $287,705.22 and received a settlement of $60,000.

Background Information

Andrew Elsoffer 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

In the past, he worked for Stifel, Nicolaus & Company(CRD#:793) and Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691).

Kurta Law Can Help

If you worked with Andrew Elsoffer 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.