Andrew Benjamin Edenbaum, of Aventura, Florida, a stockbroker formerly registered with Oppenheimer & Co., has been suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Edenbaum failed to comply with an arbitration award obtained against by Oppenheimer & Co. FINRA Arbitration No. 20-00055 (June 21, 2022).
However, only two months earlier, FINRA Public Disclosure shows that on March 21, 2022, Edenbaum was fined $10,000.00 and suspended for three months by FINRA because Edenbaum engaged in private securities transactions or selling away. Letter of Acceptance, Waiver, and Consent No. 2020067007401 (March 21, 2022).
According to the AWC, Edenbaum engaged in a secret investment arrangement without informing his company in writing beforehand. The investigation found that Edenbaum sold a variable annuity to someone who did not have accounts with the securities broker dealer. That person was referred to Edenbaum for investment advice. The person invested $150,000.00 in the variable annuity through a securities broker dealer that Edenbaum was not affiliated with.
During this time, Edenbaum did not have the necessary insurance license to sell a variable annuity. However, he took part in the transaction by getting a variable annuity application from a stockbroker of the other securities broker dealer and assisting the investor in completing it.
Additionally, FINRA stated that Edenbaum provided guidance to the investor on how to allocate her investments. He also submitted the investor’s application to the stockbroker of the other securities broker dealer, gave instructions on how to transfer funds for an investment to the annuity issuer, and identified himself as the contact person for any investment-related inquiries. Therefore, Edenbaum violated FINRA Rules 2010 and 3280.
Edenbaum is referenced in a customer initiated investment related NASD securities arbitration claim that was settled for $5,600.00 in damages based upon allegations that Edenbaum engaged in unauthorized trading in over-the-counter equities, committed fraud, churned accounts, failed to follow instructions, and inappropriately used margin when Edenbaum was registered with Prime Charter Ltd. NASD Arbitration No. 03-05738 (October 4, 2004). The claim also alleges that Prime Charter Ltd. failed to supervise his activities.
On January 8, 2015, a customer initiated investment related complaint involving Edenbaum’s conduct was settled to resolve allegations that Edenbaum engaged in unauthorized trading in stocks and churned the customer’s account when Edenbaum was registered with Oppenheimer Co. Inc.
Edenbaum was registered with National Securities Corporation as a stockbroker between July 2, 2018, and July 9, 2020. He was registered with AGP (Alliance Global Partners) as a stockbroker between October 8, 2020, and March 30, 2022.
