Andrew Benjamin Edenbaum of Aventura Florida, a stockbroker formerly registered with National Securities Corporation, has been fined $10,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Edenbaum participated in private securities transactions while he was registered with National Securities Corporation. Letter of Acceptance, Waiver, and Consent No. 2020067007401 (March 21, 2022).
According to the AWC, from February of 2020 to April of 2020, Edenbaum took part in a variable annuity sale involving someone who was not a customer of National Securities Corporation. The AWC states that $150,000 had been invested in the variable annuity because of Edenbaum. The AWC states that the annuity transaction was arranged through a securities broker dealer that was not affiliated with Edenbaum’s employer.
The regulator indicates that Edenbaum received the variable annuity application by going through a stockbroker at the outside securities broker dealer. The investor was also advised by Edenbaum regarding an investment allocation in the annuity and received instructions from Edenbaum on making the investment. Edenbaum was the customer’s point of contact through the arrangement. All the while, FINRA states that Edenbaum did not have an insurance license required for variable annuity sales.
FINRA states that stockbrokers were prohibited from selling away from the securities broker dealer. The only private securities transactions permitted were those involving the stockbroker’s prior notice to the firm plus the firm’s written authorization. FINRA states that Edenbaum violated FINRA Rules 2010 and 3280.
Edenbaum has been identified in two customer initiated investment related disputes containing allegations of his conduct while employed by securities broker dealers, including Prime Charter Ltd. and Oppenheimer Co. FINRA Public Disclosure shows that a customer initiated investment related arbitration claim concerning Edenbaum’s activities was resolved for $5,600.00 in damages based upon accusations of misrepresentation, failure to supervise, churning, failure to follow instructions, unauthorized margin use, unsuitable investments, and fraud during the time that Edenbaum was employed by Prime Charter Ltd.
Another customer initiated investment related complaint involving Edenbaum’s conduct was settled to resolve allegations that the customer’s account had been churned by Edenbaum when he was associated with Oppenheimer. According to the complaint, Edenbaum also engaged in unauthorized trading of common and preferred stock and over-the-counter equities.
Edenbaum was registered with Oppenheimer as a stockbroker and investment adviser representative until July 13, 2018. He was employed by National Securities Corp as a stockbroker between July 2, 2018, and July 9, 2020, and National Asset Management Inc. as an investment adviser representative between July 11, 2018, and July 9, 2020. Since October 8, 2020, Edenbaum has been associated with AGP Alliance Global Partners as a stockbroker. He became an investment adviser representative at AGP on February 23, 2021.
