Former Stifel Nicolaus & Co. Broker, Andrew Elsoffer, Has Six Customer Complaints, Alleging Sales Practice Violations
The Wolper Law Firm is currently investigating claims against Andrew Elsoffer, a former Financial Advisor at Stifel Nicolaus & Co. in Pepper Pike, Ohio. Andrew Elsoffer has been in the securities industry since the 1990s and previously worked at Merrill Lynch.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since 2002, Andrew Elsoffer has been the subject of six (6) customer complaints for sales practice violations and was discharged from his employment at Merrill Lynch for alleged rules violations.
The customer complaints against Andrew Elsoffer include the following:
March 2016—”Claimants allege securities fraud, common law fraud and misrepresentation, unsuitability, breach of fiduciary duty, elder abuse and exploitation, breach of contract, gross negligence, and negligence.” The mater was settled for $165,000.
Febuary 2016—”Client alleges losses resulting from unsuitable investments.” The matter was settled for $60,000.
August 2009—”THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS.” The matter was settled for $75,000.
In addition, in 2011, Merrill Lynch discharged Andrew Elsoffer for the alleged
“FAILURE TO FOLLOW MANAGEMENT DIRECTIVES AND VIOLATION OF FIRM POLICY INCLUDING EXERCISING TIME AND PRICE DISCRETION IN CLIENT ACCOUNTS AND MISMARKING ORDER TICKETS.”
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
If you or someone you know was a customer Andrew Elfsoffer and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.
Former Stifel, Nicolaus Financial Advisor Andrew Elsoffer Suspended After By FINRA
Andrew Elsoffer (CRD#: 2580009) is a previously registered Broker and an Investment Advisor.
He entered the securities industry in 1995 and previously worked for Stifel, Nicolaus & Company, Inc., and Merrill Lynch, Pierce, Fenner & Smith, Inc.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2022, FINRA sanctioned Andrew Elsoffer, levying a civil and administrative penalty/fine of $15,000, and suspending him from all capacities for two years beginning March 7, 2022 and ending March 6, 2024. The FINRA sanction states, “Without admitting or denying the findings, Elsoffer consented to the sanctions and to the entry of findings that he exercised discretion without written authorization in customer accounts. The findings stated that although the customers understood that Elsoffer was conducting trading in their accounts, none of them provided prior written authorization for him to exercise discretion in their accounts. In addition, Elsoffer’s member firm did not accept these accounts as discretionary. The findings also stated that Elsoffer assisted his firm customer, who was a close friend but not an immediate family member, with renovating his home at a time when the customer was unable to oversee the renovations himself. He loaned the customer a total of $13,703 to pay to the contractors renovating the home. The customer then reimbursed Elsoffer via three checks totaling $2,703 drawn on his firm account and two checks totaling $11,000 drawn on his bank account. Elsoffer did not disclose or seek prior approval from the firm for the loans. The findings also included that Elsoffer initially provided false information to FINRA. FINRA requested that Elsoffer provide a signed statement addressing his termination from the firm and allegations that he had violated firm policy. In Elsoffer’s written response, he misrepresented that all check writing was done from the customer’s firm account. FINRA later asked Elsoffer whether, in addition to the three checks written from the firm account, the customer had written Elsoffer additional checks from any bank accounts and if so, to provide all supporting documentation. In his written response, Elsoffer misrepresented that no other checks existed. Elsoffer later corrected his prior misstatements by producing personal bank statements and two additional cancelled checks drawn on the customer’s bank account totaling $11,000.”
For a copy of the FINRA sanction, click here.
In addition, Andrew Elsoffer has been the subject of eight customer complaints and two prior employment terminations, including the following:
- February 2020 –”Claimants allege common law fraud, negligence, breach of fiduciary duty breach of contract.” The customer dispute is pending. Damages of $250,000 are sought.
- July 2019 — “Claimants allege negligence, failure to supervise, suitability, unauthorized trading, breach of contract, breach of fiduciary duty, and violations of the Ohio securities laws.” The customer dispute was settled for $14,999.
- October 2018 — “Loss of confidence following the settlement of an arbitration and violation of the firm’s policy prohibiting receipt of customer funds into an employee’s account. The customer has not complained and the firm has found no evidence of wrongful taking of client property.” Andrew Elsoffer was discharged from Stifel Nicolaus.
- March 2016 — “Claimants allege securities fraud, common law fraud and misrepresentation, unsuitability, breach of fiduciary duty, elder abuse and exploitation, breach of contract, gross negligence, and negligence.” The customer dispute was settled for $165,000.
- February 2016 — “Client alleges losses resulting from unsuitable investments. 5/2/13 through 9/18/15.” The customer dispute was settled for $60,000.
- October 2011 — “FAILURE TO FOLLOW MANAGEMENT DIRECTIVES AND VIOLATION OF FIRM POLICY INCLUDING EXERCISING TIME AND PRICE DISCRETION IN CLIENT ACCOUNTS AND MISMARKING ORDER TICKETS.” Andrew Elsoffer was discharged from Merrill Lynch, Pierce, Fenner & Smith, Inc.
- August 2009 — “THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS.” The customer dispute was settled for $75,000.
- February 2005 — “CUSTOMER ALLEGES FA MADE EXCESSIVE TRADES.” The customer dispute was settled for $2,520.
- March 2004 — “THE CUSTOMER ALLEGES THE FA MADE UNAUTHORIZED TRANSACTIONS.” The customer dispute was denied.
- September 2002 — “THE CLIENTS ALLEGE THAT THEIR PROFESSIONALLY MANAGED ACCOUNTS WERE NOT SUITABLE. DAMAGES NOT SPECIFIED.” The customer dispute was settled for $6,000.
For a copy of Andrew Elsoffer’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
FINRA regulations require that a customer’s written authorization is required before a broker-dealer can carry out transactions in the customer’s account. In addition, the broker-dealer’s member firm needs to approve the broker-dealer’s authorization. These measures are intended to protect the customer. Discretionary trading allows the broker-dealer to unilaterally decide to buy or sell securities at any price and not have to check with the client first. Exercising discretion without authorization can be costly to investors, and broker-dealers and their member firms, too.
In addition, to the extent a Financial Advisor converts client assets during the course and scope of his employment and/or registration with the brokerage firm, that brokerage firm may be held liable for any attendant losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at firstname.lastname@example.org.