Soreide Law Group obtained the following information on FINRA’s website on the September, 2020, disciplinary report on the following broker:
Mark Harris Elenowitz (CRD #2057802)
On July 27, 2020, an Offer of Settlement was issued in which Mark Harris Elenowitz was fined $15,000, suspended from association with any FINRA member in all capacities for 30 days, suspended from association with any FINRA member in any principal capacity for 30 days and required to re-qualify by examination as a principal prior to acting in that capacity with any FINRA member.
Without admitting or denying the allegations, Mark Harris Elenowitz consented to the sanctions and to the entry of findings that he allegedly recommended and sold participation interests in private placements to clients, without having a reasonable basis to believe that the recommendations were suitable for at least some investors.
FINRA’s findings stated that Mark Harris Elenowitz did not have a reasonable basis to recommend these investments because he allegedly failed to conduct reasonable diligence on the offerings, the two issuers of these investments, both of which purported to be in the business of purchasing and re-selling tickets to live concerts and theater events, and the principals who formed and managed the issuers. FINRA states that through the offerings, Elenowitz’s member firm raised over $16 million from clients and generated nearly $500,000 in placement agent fees for the firm.
According to the FINRA report, the clients ultimately lost millions of dollars from investing in these offerings when it was later discovered that the principals used the issuers to conduct an alleged Ponzi scheme. Mark Harris Elenowitz personally solicited one of the clients to invest in the offerings and the client made investments totaling $500,000, allegedly based on his recommendations.
FINRA’s findings also stated that Mark Harris Elenowitz failed to reasonably supervise the offerings because he failed to enforce the firm’s WSPs with respect to private placement due diligence and failed to investigate and follow-up on red flags that could have alerted him to the potential misconduct.
The suspension in all capacities was in effect from August 17, 2020, through September 15, 2020. The suspension in any principal capacity will be in effect from September 16, 2020, through October 15, 2020. (FINRA Case #2017053409201)
According to FINRA’s BrokerCheck, Mark Harris Elenowitz, has been registered in the securities industry for 18 years and has 4 Disclosures on his CRD report, 2 are “Customer Disputes.”
A customer dispute filed against Elenowitz on February 8, 2017, that is still pending. The allegations are, “Alleges failure to complete due diligence and disclosure of commissions.” The damage amount requested is, $1,500,000.00.
On March 17, 2017, there was another customer dispute filed that settled for $400,000.00. The allegations were, “Alleged failure to complete due diligence – December 2015 through March 2016.”
Mark Harris Elenowitz has been registered with 6 firms and is currently with the following two firms:
DIGITAL OFFERING LLC
1461 GLENNEYRE STREET SUITE D,
LAGUNA BEACH, CA 92651 (Registered with this firm since 3/13/2020)
CAMBRIA CAPITAL, LLC
488 E. WINCHESTER ST SUITE 200,
SALT LAKE CITY, UT 84107 (Registered with this firm since 3/11/2020)
Elenowitz was recently listed with:
05/25/2007 – 05/12/2020 TRIPOINT GLOBAL EQUITIES/BANQ – NEW YORK, NY
If you’ve experienced investment losses due to the actions or recommendations of broker, Mark Harris Elenowitz, contact an experienced securities lawyer at no cost at Soreide Law Group to discuss the possible recovery of your investment losses through a FINRA arbitration at: 888-760-6552.
Soreide Law Group works on a contingency fee basis and represents our clients nationwide before FINRA.