FINRA

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.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$15,000.00

Suspension

All Capacities

Two Years

3/7/2022

3/6/2024

Claimants allege common law fraud, negligence, breach of fiduciary duty breach of contract.

$250,000.00

$20,000.00

Claimants allege negligence, failure to supervise, suitability, unauthorized trading, breach of contract, breach of fiduciary duty, and violations of the Ohio securities laws.

$100,000.00

$14,999.00

Stifel Nicolaus

Discharged

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.

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.

$2,250,000.00

$165,000.00

Client alleges losses resulting from unsuitable investments. 5/2/13 through 9/18/15

$287,705.22

$60,000.00

Original complaint denied 2/25/2016

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Discharged

FAILURE TO FOLLOW MANAGEMENT DIRECTIVES AND VIOLATION OF FIRM POLICY INCLUDING EXERCISING TIME AND PRICE DISCRETION IN CLIENT ACCOUNTS AND MISMARKING ORDER TICKETS.

THE CUSTOMER ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS.

$446,000.00

$75,000.00

CUSTOMER ALLEGES FA MADE EXCESSIVE TRADES.

$12,000.00

$2,520.00

MATTER SETTLED TO AVOID A LENGTHY AND COSTLY ARBITRATION PROCEEDING.

THE CUSTOMER ALLEGES THE FA MADE UNAUTHORIZED TRANSACTIONS.

$42,000.00

UPON INVESTIGATION, THE COMPLAINT WAS FOUND TO BE WITHOUT MERIT.

THE CLIENTS ALLEGE THAT THEIR PROFESSIONALLY MANAGED ACCOUNTS WERE NOT SUITABLE. DAMAGES NOT SPECIFIED.

$6,000.00