Andrew Elsoffer Fraud Allegations Fact-checked (2024)

Andrew Elsoffer is a soccer coach, investment advisor, and community activist who says he is from Cleveland, Ohio. According to Andrew Elsoffer, his wide range of work experiences has helped him polish his business sense and commitment to providing excellent customer service.

Financial advisor Andrew Elsoffer of Cleveland, Ohio, asserts that he has built a successful business and a vibrant neighborhood. After launching and expanding an event management company while still a college student, he went on to work in corporate finance and investment. He portrays himself as a highly engaged member of the community who loves coaching soccer and investing in local youths outside of work. He’s a little bit of a braggart.

Before relocating to Cleveland, Andrew Elsoffer attended Ann Arbor’s University of Michigan. He asserts that his collegiate education in political science and business administration adequately prepared him for his career. He boldly asserts that he began playing soccer throughout his high school years and intended to continue playing throughout his four years of college, exhibiting his impressive athletic abilities. According to Andrew Elsoffer, he kept soccer as his top priority after graduation and played for a semi-professional team in his area for four years.

According to Andrew Elsoffer, who is claiming a wealth of experience in the financial sector, he has been advising clients from all walks of life for more than 25 years. He has extensive experience managing financial portfolios for high-net-worth individuals and businesses, totaling millions of dollars. Andrew, who is inherently egocentric, asserts that he has learned the importance of smart business alliances, professional conduct, and clear and concise communication via his vast experience. He values his clients and professional network, strives to excel in whatever he does, and is always open to new opportunities for growth.

Andrew Elsoffer goes on to say that he volunteered for more than five years at the Ronald McDonald House, an organization that helps families cope with their children’s hospital stays by providing accommodation and assistance. For eight years, he was also involved with the Cleveland Swim for Diabetes Association, serving as co-chair for two of those years.

Culinary Marketing

According to Andrew Elsoffer, Culinary Marketing Incorporated’s founding kindled his entrepreneurial spirit. This venture created the framework for his continuous commitment to helping clients and creating a customer-focused culture in all of his business endeavors. Through this experience, Andrew learned about business management, client interactions, and effective marketing. 

What is the actual situation, though?

It’s claimed that Andrew Elsoffer conducts illicit business. 

Currently investigating the purported misconduct of securities broker Andrew Elsoffer is Oakes & Fosher. According to his FINRA BrokerCheck report, which is accessible to the public, Andrew Elsoffer has been the subject of numerous client complaints throughout his career. He no longer has any position as a securities broker.

Ohio-born Andrew Elsoffer was a securities broker with 23 years of industry experience. During his career, he had been registered with two different securities firms.

His List of Registrations

• Merrill Lynch (1995–2011) and Pierce, Fenner & Smith
• Nicolaus & Company Stifel, 2011-2018 

Andrew Elsoffer: The Allegations Against Him

1. A customer filed a complaint in February 2016 alleging that Andrew Elsoffer made inappropriate investment recommendations that cost the account money. Damages of $60,000 were settled in this case. In March 2016, a customer complained, claiming that Elsoffer had violated his fiduciary duties, committed securities and common law fraud, and fabricated important information about purportedly inappropriate transactions. $165,000 in damages were settled in this case.

2. In July 2019, clients claimed that Elsoffer had neglected their accounts and had engaged in illicit trading, in violation of his fiduciary obligations. $14,999 was the settlement amount for damages in this dispute.

3. In February 2020, customers filed claims alleging negligence, violation of fiduciary duty, and common law fraud. In this lawsuit, which is now pending, the consumers are requesting damages of $250,000.

4. After FINRA concluded that Elsoffer had used discretion in customer accounts without having written approval, the organization formally sanctioned him in February 2022.

5. These findings resulted in Elsoffer being prohibited from acting as a securities broker in any capacity for two years and being required to pay a fine of $15,000.

It means what?

Investors must authorize securities brokers to trade on their behalf. In flexible trading, a securities broker can make trades in an investor’s account without prior authorization, although the investor must give written consent. Formal permission involves the investor and protects them against unsafe investments made without their knowledge. 

Andrew Elsoffer-Stifel Nicolaus Stockbroker Prohibited for Fraud 

Andrew Elsoffer was a former stockbroker from Pepper Pike, Ohio, who worked for Stifel Nicolaus Company Incorporated. Regulatory investigations exposed several misconducts by Elsoffer, which resulted in hefty fines and industry bans.

1. Unauthorized Trading: In violation of Stifel Nicolaus’ regulations, FINRA Rule 2010, and NASD Rule 2510(b), Elsoffer carried out over 2,800 transactions in five customers’ accounts without first getting written consent for discretionary trading.

2. Lending Money: Although Elsoffer was not allowed to do so unless specifically permitted by the company, he loaned money to a Stifel Nicolaus client. Furthermore, he violated FINRA Rules 2010 and 3240 by failing to disclose this debt.

3. Information Falsification: Elsoffer violated FINRA Rules 2010 and 8210 by giving FINRA false information while they were conducting their investigation.

Elsoffer has been embroiled in some customer-initiated disputes over the years, involving claims of inappropriate advice, fraud, and overtrading in mutual funds. Notable examples include:

6,000.00, $42,000.00, $75,000.00, $165,000.00, $60,000.00, and $14,999.00 in settlements for damages resulting from allegations of inappropriate transactions, inappropriate counsel, carelessness, violation of contract, breach of fiduciary duty, and elder abuse.

Settlements involving claims of inappropriate transactions, inappropriate counsel, carelessness, breach of contract, breach of fiduciary duty, and elder abuse have resulted in damages of $6,000.00, $42,000.00, $75,000.00, $165,000.00, $60,000.00, and $14,999.00.

Claims of improper and unlawful stock trading that resulted in losses, violations of Ohio securities laws, and oversight errors by Stifel Nicolaus that caused losses for clients. 2018 saw Elsoffer fired from Stifel Nicolaus due to accusations he had violated company standards regarding customer funds and handled conflicts with customers.

Elsoffer was fired from Stifel Nicolaus in 2018 due to accusations he had violated company standards in handling customer funds and had received complaints from unhappy customers.

(Source)

To sum up, Andrew Elsoffer’s reputation has been ruined by multiple misbehaviors that have led to large financial fines, industry prohibitions, and a damaged reputation in the business.

Andrew Elsoffer was penalized by FINRA for misrepresenting information 

One such private American business is the Financial Industry Regulatory Authority (FINRA), which serves as an SRO to monitor the exchange markets and member brokerage firms. FINRA oversees the arbitration, enforcement, and regulation of members of the New York Stock Exchange and is the heir apparent to the National Association of Securities Dealers, Inc. (NASD). At the very top of the US securities sector regulatory food chain is the United States Securities and Exchange Commission (SEC), which includes FINRA.

The leading independent agency responsible for overseeing all U.S. securities businesses is the Financial Industry Regulatory Authority (FINRA). Ensuring the integrity and fairness of the United States securities sector is FINRA’s primary mission. Approximately 624,674 registered securities salespeople, 153,907 branch offices, and 3,517 brokerage businesses were monitored by FINRA in December 2019.

FINRA has 20 regional offices spread out around the US and employs about 3,600 individuals between its headquarters in New York and Washington, D.C. 

How does FINRA deal with violators such as Andrew Elsoffer?

By what means does FINRA deal with wrongdoers such as Andrew Elsoffer?

The kind of discipline can range from formal to informal. Expulsion from the industry, suspension, fines, or restitution orders are all examples of formal actions. Informal measures can take the shape of letters of warning or detailed instructions to fix an issue. Much like FINRA did with Andrew Elsoffer, who was penalized for giving investors misleading information. 

How does FINRA deal with violators such as Andrew Elsoffer?

By what means does FINRA deal with wrongdoers such as Andrew Elsoffer?

The kind of discipline can range from formal to informal. Expulsion from the industry, suspension, fines, or restitution orders are all examples of formal actions. Informal measures can take the shape of letters of warning or detailed instructions to fix an issue. Much like FINRA did with Andrew Elsoffer, who was penalized for giving investors misleading information. 

Fake PR may be acquired, but not Andrew Elsoffer! (Andrew Elsoffer hides his fraudster investor image with fake PR)

To further his career, Andrew Elsoffer has been hiding his damaged reputation as a dishonest stockbroker through false advertising and misleading public relations strategies. He tells lies and cheats to give himself credibility.

Elsoffer uses dishonest public relations techniques, such as disseminating bogus information and news releases, to hide his fraudulent actions and project an image of reliability. To give the impression of credibility, he spends on sponsored content and fictitious stories, especially in mid-tier and premium media venues. He lacks the diversity and volume required to preserve authenticity, despite having the financial capacity to purchase such content, which suggests a lack of effort in content development.

Elsoffer presents himself as a sports hero in these fake magazines, highlighting his accomplishments as a soccer coach and his leadership qualities in the community. He emphasizes the values of teamwork, discipline, and determination that he has instilled in his high school, college, and club teams. Furthermore, he brags about his time at Merrill Lynch, saying that he developed a winning team culture and remained steady in his devotion to coaching for 20 seasons running.

Elsoffer uses misleading PR strategies to hide his fraudulent history and improve his public image by fabricating stories and endorsements. He tries to change people’s opinions and further his career by using these unethical marketing techniques, all the while hiding his criminal history and dishonest stockbroker behavior.

Conclusion

In conclusion, it is now clear that Andrew Elsoffer used dishonest public relations strategies and false advertising to try to hide his past fraud and further his career. Even though he has attempted to present himself as an investing advisor, sports hero, and community activist, regulatory investigations have uncovered multiple instances of misbehavior during his time working as a securities broker. Significant fines and industry prohibitions have been imposed as a result of his acts, which included trading without authorization, lending money without disclosure, and fabricating information. Elsoffer’s employment of fictitious public relations to cover up his false persona simply works to further damage his reputation and erode confidence in his authority.