Florida Broker Fined, Suspended For Improper Private Securities Transaction
Andrew Benjamin Edenbaum (CRD #3040543) is a previously registered investment adviser (RIA). Mr. Edenbaum was most recently associated with Oppenheimer & CO (2002 to 2018), National Securities Corporation (2018 to 2020), and A.G.P/Alliance Global Partners (2020 to 2022). At all three firms, this broker was based at office locations in South Florida.
Earlier this year, Florida broker Andrew Benjamin Edenbaum faced disciplinary action from the Financial Industry Regulatory Authority (FINRA) for improper conduct related to private securities transactions. He was Fined $10,000 and suspended for three months. Here, our Miami selling away investments lawyers discuss the allegations raised against the recently suspended Florida securities broker.
Broker Sanctions: Andrew Benjamin Edenbaum
According to allegations raised in the FINRA Letter of Acceptance, Waiver, and Consent (NO. 2020067007401), the agency investigated and reviewed private securities transactions that Florida broker Andrew Benjamin Edenbaum participated in between February of 2020 and April of 2020. During this time, Mr. Edenbaum was an associate of National Securities Corporation in Aventura, FL.
FINRA contends that former National Securities Corporation broker Andrew Benjamin Edenbaum participated in private securities transactions totaling $150,000 without providing to or obtained permission from his member firm. The alleged misconduct constitutes a violation of FINRA Rule 3280 and FINRA Rule 2010.
Specifically, Mr. Edenbaum allegedly sold approximately $150,000 worth of variable annuities to an individual who was not a customer of his member firm (National Securities Corporation). Beyond lacking the required permission and oversight from his member firm, Mr. Edenbaum lacked the insurance license needed to offer the product in question.
Without admitting to or denying any of the specific allegations raised against him, former National Securities Corporation broker Andrew Benjamin Edenbaum consented to FINRA’s proposed penalties. He will pay a $10,000 fine and will face a three month suspension from the securities industry. The suspension ends on July 17th, 2022.
AN Overview of FINRA Rules for Private Securities Transactions
The FINRA rules for private securities transactions exist to help ensure that there is adequate oversight. Brokerage firms are responsible for overseeing the private securities transactions of their registered representatives. Under FINRA Rule 3280, any broker who intends to participate in a private securities transaction must:
- Disclose the matter to their member firm ahead of time; and
- Seek approval from their member firm.
If a brokerage firm does approve the private securities transaction, then it becomes responsible for ensuring that the individual registered representative is living up to his or her professional obligations.
Call Our Miami Private Securities Losses Attorney Today
At Carlson & Associates, P.A., we are a law firm that advocates for the financial interests of investors wronged by brokers and brokerage firms. If you suffered losses in a private securities transaction, we are available to help you determine the best path to justice. Call us at our Miami law office to set up a free, no obligation review and evaluation of your legal case. Your legal rights matter.
Sources:
finra.org/sites/default/files/fda_documents/2020067007401%20Andrew%20Benjamin%20Edenbaum%20CRD%203040543%20AWC%20jlg%20%282022-1650500426033%29.pdf
brokercheck.finra.org/individual/summary/3040543