TriPoint CEO Mark Elenowitz Makes Bad Investment Recommendations On Private Placements, FINRA Says
Investor Alert! The Financial Industry Regulatory Authority (“FINRA”) officially suspended Mark H. Elenowitz (CRD#: 2057802, New York, New York). This broker used to work for Tripoint Global Equities from May 2007 to May 2020 and he now works for Digital Offering LLC (Laguna Beach, California) and Cambria Capital LLC (Salt Lake City, Utah). Notably, the suspension – effective from August 17, 2020 to September 15, 2020 – hampered Elenowitz’s ability to be a securities broker. Not only that, but clients are complaining about Elenowitz. In fact, publicly available information indicates that Elenowitz sold investments that were really bad for his clients. Here’s more.
FINRA Orders Mark Elenowitz To Pay $15,000 Fine Over Unreasonable Recommendations, Failure To Supervise
FINRA Department of Enforcement went after Mark Elenowitz in 2020 for unsuitable recommendations and spotty due diligence. The financial industry watchdog indicated that Elenowitz not only recommended bad private placements to clients but he also sold them without reason to believe that they were suitable for investors.
FINRA says that Mark Elenowitz did not conduct reasonable diligence on the offerings. He did not check the issuers of the investments or those responsible for forming the issuers. Worse yet, Elenowitz failed to investigate and follow up on red flags in connection with the issuer’s business plans and viability. For this reason, Elenowitz did not know whether the investments were even legitimate.
As it turns out, investors lost millions from the private placement offering. This is because the issuer of the securities was used to create or carry out a Ponzi scheme. Mark Elenowitz solicited a client who invested $500,000 in the doomed private placement.
FINRA also pointed out that Mark Elenowitz did not reasonably supervise the private placement offerings. As such, he violated FINRA’s suitability rule. Supposedly, as CEO of TriPoint Global Capital, he did not enforce written supervisory procedures concerning private offerings that were made through Tripoint. Specifically, he was directed under those procedures to perform due diligence and to investigate concerns or risks surrounding investments sold to clients.
FINRA says that clients suffered “substantial losses” because of investments TriPoint and Mark Elenowitz recommended.
TriPoint Client Brings Lawsuit About Elenowitz And Private Placements
Notably, in February 2017, a client sued TriPoint over Mark Elenowitz. Mainly, the client indicated that Elenowitz did not complete due diligence on private placements. It is possible that the client is referring to the private placement which FINRA refers to in its enforcement action against Elenowitz. Apparently, the client was unhappy with Elenowitz’s commissions. It is possible that Elenowitz applied excessive commissions in the purchase of those investments. For this reason, the client demands $1,500,000 in compensation in this ongoing matter.
Client Indicates That Mark Elenowitz Fails To Conduct Due Diligence
Evidently, a second Tripoint client came forward to dispute Mark Elenowitz’s sales practices. From 2015 to 2016, Elenowitz supposedly sold a private placement offering without completing due diligence. It seems that Elenowitz caused the client to invest in the private placement. For this reason, TriPoint opted to settle this matter though making a $400,000 payment to the client.
Did Elenowitz Sell You Unsuitable Investments?
Experienced losses due to purchasing private placements or alternative investments through Mark Elenowitz? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokerage firms and individuals like Elenowitz.