Former Stifel, Nicolaus & Company, Incorporated broker Andrew Elsoffer (CRD# 2580009) is alleged to recommend unsuitable high risk energy investments. He was registered with Stifel, Nicolaus & Company, Incorporated in Pepper Pike, Ohio from 2011 until November 2018, when he was terminated regarding, “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.”
Previously, he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated in Pepper Pike, Ohio from 1995 to 2011, when he was terminated regarding, “Failure to follow management directives and violation of firm policy including exercising time and price discretion in client accounts and mismarking order tickets.”
It is alleged that he recommended his clients investment in Linn Energy. Linn Energy was an oil and natural gas company headquartered in Houston, Texas. When global crude oil prices dropped, Linn Energy accrued significant debt. According to the company, Linn Energy, LLC filed a voluntary petition for restructuring under Chapter 11 of the Bankruptcy Code in May 2016 to alleviate itself of $6.06 billion in debt. In February 2017, LINN Energy, Inc. was formed as the reorganized successor to Linn Energy, LLC.
In February 2022, FINRA sanctioned him to pay a $15,000 Civil and Administrative Penalty and Fine and suspended him for two years. According to FINRA, he “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.”
FINRA also found that he loaned a customer money to pay for contractors renovating their home, without his member firm’s approval. In addition, FINRA found that he provided false information to the regulatory agency by misrepresenting that the checks written for the renovation project were done from the customer’s firm account.
Andrew Elsoffer Customer Complaints
Andrew Elsoffer has been the subject of eight customer complaints between 2002 and 2020, one of which was denied, according to his CRD report. Recent claims are regarding:
February 2020. “Claimants allege common law fraud, negligence, breach of fiduciary duty breach of contract.” The customer sought $250,000 in damages and the case was settled for $20,000.
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 sought $100,000 in damages and the case was settled for $14,999.
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 sought $2,250,000 in damages and the case was settled for $165,000.
February 2016. “Client alleges losses resulting from unsuitable investments. 5/2/13 through 9/18/15.” The customer sought $287,705.22 in damages and the case settled for $60,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Stifel, Nicolaus & Company, Incorporated may be liable for investment or other losses suffered by Andrew Elsoffer’s customers.
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