FINRA Fines NSC Securities Broker Andrew Edenbaum

Soreide Law Group is conducting an investigation into potential claims on behalf of investors who may have incurred financial losses due to the actions of securities broker Andrew Benjamin Edenbaum [CRD#: 3040543, Boca Raton, Florida].

Edenbaum worked for A.G.P. / Alliance Global Partners from October 2020 to March 2022 in Boca Raton, FL. He also worked for National Securities Corporation from July 2018 to July 2020 in Aventura, FL. Before then, he worked with Oppenheimer Co. Inc. from January 2002 to July 2018, also in Boca Raton, FL. Notably, the Financial Industry Regulatory Authority (FINRA) suspended Mr. Edenbaum for unauthorized private securities transactions. This led to a suspension and a monetary fine. Additionally, there have been client complaints alleging unauthorized trading and other sales practice violations during his employment.

FINRA Sanctioned Edenbaum For Unauthorized Private Securities Transaction

Evidently, on March 21, 2022, FINRA issued Case: 2020067007401 sanctioning Andrew Edenbaum for infractions. Specifically, FINRA alleged that Edenbaum participated in a private securities transaction without providing prior written notice to his member firm.

Notably, Andrew Edenbaum, while associated with National Securities Corporation, purportedly engaged in the sale of a variable annuity to an individual without proper authorization. On March 21, 2022, without admitting or denying the findings, Edenbaum consented to the sanctions and to the entry of findings by FINRA.

He was implicated in facilitating the investment of $150,000 in a variable annuity by an individual referred to him for investment advice. Supposedly, this happened through a broker-dealer that Edenbaum was not associated with. It also happened during a time when he lacked the required insurance license to deal in variable annuities. His involvement reportedly included advising the investor on fund allocation, directing the transfer of investment funds, and assisting with the application process, all while positioning himself as the primary contact for the investor regarding the transaction. However, Edenbaum did not receive any financial compensation for his role in this transaction.

The resolution of this matter came through an Acceptance, Waiver, and Consent (AWC), resulting in a three-month suspension of Edenbaum's ability to act in all capacities from April 18, 2022, to July 17, 2022. Additionally, a monetary sanction of $10,000 was imposed on Edenbaum.

Oppenheimer Co. Inc. Investor Accused Andrew Edenbaum Of Unauthorized Trading

Also, a client filed a complaint about Andrew Edenbaum. Evidently, the client alleged that Edenbaum churned their account and made unauthorized transactions between June 1, 2013, and June 15, 2014. Because of this, the client allegedly sustained damages on over-the-counter equities and stocks. Therefore, on January 8, 2015, Oppenheimer Co. Inc. settled this matter by paying the client $4,612.64 in damages.

Edenbaum Disclosed Churning Allegations By Prime Charter, Ltd. Client

Additionally, a client of Prime Charter Ltd. contested Andrew Edenbaum’s sales practices by filing NASD Arbitration: 03-05738. Namely, the investor alleged unsuitable investments, unauthorized use of margin, unauthorized trading, failure to follow instructions, misrepresentation, churning, and failure to supervise. It appears that Edenbaum caused the client to sustain damages. Therefore, Prime Charter Ltd. opted to settle the matter on October 4, 2004, by compensating the client in the amount of $5,600.

National Securities Corp Disaffiliated With Andrew Edenbaum For Violation Of Firm Rules

Evidently, on June 12, 2020, National Securities Corp disaffiliated with Andrew Edenbaum. Namely, National Securities Corp alleged that Edenbaum violated firm rules for sales activities involving the solicitation of an annuity product while his product license had lapsed.

Seek Legal Assistance

Did you experience losses because of Andrew Edenbaum? If so, reach out to Soreide Law Group online or at (888) 760-6552 and talk with a securities attorney concerning a potential recovery of your investment losses. Soreide Law Group has recovered losses for investors throughout the United States, works on a contingency fee basis, and advances all costs. Edenbaum and brokerage firms he worked for deny accusations of sales practice violations.