Stifel Nicolaus Sued By Investors For Breach of Fiduciary Duty

Andrew Bruce Elsoffer of Pepper Pike Ohio a stockbroker formerly registered with Stifel Nicolaus Company is the subject of a customer initiated investment related arbitration claim in which the customer sought $250,000.00 in damages based upon accusations that a fiduciary duty that was owed to the customer had been breached by the stockbroker and that the customer had been defrauded on equities purchases that were made during the period in which Elsoffer was associated with Stifel Nicolaus. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00655 (Feb. 27, 2020). The claim also alleges negligence and the breach of a contract between the customer and Stifel Nicolaus.

Elsoffer has been identified in seven more customer initiated investment related disputes containing allegations of his misconduct while employed by Merrill Lynch and Stifel Nicolaus. FINRA Public Disclosure confirms that a customer filed an investment related complaint involving Elsoffer’s conduct that was settled to resolve accusations of excessive mutual fund trading by the stockbroker. Elsoffer is referenced in another customer initiated investment related arbitration claim which settled for $75,000.00 in damages founded on allegations that stock advice that was provided by Elsoffer was not suitable for the Merrill Lynch customer.

Elsoffer is also the subject of a customer initiated investment related arbitration claim that was resolved for $165,000.00 in damages supported by accusations of negligence and the violation of an investment agreement between the customer and the securities broker dealer resulting in damages to the Stifel Nicolaus customer. FINRA Arbitration No. 16-00622 (Oct. 27, 2016). According to the claim, the customer fell victim to elder abuse and fraud. Transactions were allegedly unsuitable and had been misrepresented by the stockbroker. The claim also alleges that a fiduciary duty that was owed to the customer had been breached.

On October 9, 2018, another customer initiated investment related arbitration claim involving Elsoffer’s activities was settled for $60,000.00 in damages based upon allegations of unsuitable investments being sold to the customer during the time that Elsoffer was associated with Stifel Nicolaus. FINRA Arbitration No. 18-00885 (Oct. 9, 2018).

On July 17, 2019, an additional customer filed an investment related arbitration claim involving Elsoffer’s conduct where the customer requested $100,000.00 in damages founded on accusations that Ohio securities laws had been violated and that a fiduciary duty was breached in regard to the customer’s investment in equities. FINRA Arbitration No. 19-01995. According to the claim, the customer’s account was not adequately supervised by Stifel Nicolaus. The claim also alleges that transactions were initiated without the customer’s knowledge or consent.

Elsoffer was discharged by Stifel Nicolaus on October 16, 2018 supported by allegations of him violating the securities broker dealer’s rules as it pertained to customer funds. Stifel Nicolaus also lost confidence in the stockbroker after multiple disputes were reported.