David Eilenberg – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with David Eilenberg.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to David Eilenberg. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About David Eilenberg
David Eilenberg is an Investment Adviser. David Eilenberg’s Central Registration Depository (CRD) number is 2347640 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/2347640.
Click here to download a Detailed Audit Report for David Eilenberg.
David Eilenberg has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of David Eilenberg’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 7/26/1999
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: HPD# 99-105
- DocketNumberAAO: 99-105
- Initiated By: NYSE DIVISION OF ENFORCEMENT
- Allegations: STIPULATION AND CONSENT TO PENALTY FILED BY NYSE DIVISION OF ENFORCEMENT.CONSENTED TO FINDINGS THAT HE: A. 1.VIOLATED EXCHANGE RULE 117.10 IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HIS BADGE NUMBER WAS USED FOR EXECUTIONS IN NUMEROUS STOCKS WHERE HE WAS NOT REPRESENTING THE ORDER IN THE CROWD, HAD NOT LEFT THE ORDER WITH THE SPECIALISTS FOR EXECUTION, NOR WAS OTHERWISE ENTITLED TO EXECUTION. 2.VIOLATED EXCHANGE RULE 132.30 IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HIS BADGE NUMBER WAS USED FOR TRANSACTIONS FOR WHICH HE WAS NOT THE EXECUTING BROKER. 3.ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE IN THAT ON ONE OR MORE OCCASIONS:A)IN OR ABOUT AND BETWEEN 1996 AND 1998 HE ALLOWED TWO SPECIALISTS ON THE FLOOR OF THE EXCHANGE TO USE HIS FLOOR REPORTS FOR TRANSACTIONS THEY INITIATED AND EXECUTED, USING HIS BADGE NUMBER, FOR THE ACCOUNT OF THEIR RELATIVE, WHERE HE DID NOT REPRESENT THE ORDER IN ANY WAY, AND THEREFORE INACCURATE INFORMATION WAS SUBMITTED FOR CLEARANCE AND AUDIT TRAIL PURPOSES; AND B)IN OR ABOUT AND BETWEEN 1994 AND 1997 HE IMPROPERLY USED ANOTHER EXCHANGE MEMBER?S FLOOR REPORT STATIONERY TO REPORT TRANSACTIONS HE EXECUTED FOR ONE OF HIS CUSTOMERS, WHERE SUCH ORDERS DID NOT COME THROUGH THE OTHER MEMBER?S BOOTH. 3.VIOLATED RULE 345(A) IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HE REGULARLY ACCEPTED ORDERS FROM A PUBLIC CUSTOMER AT A TIME WHEN HE WAS NOT APPROVED AS A REGISTERED REPRESENTATIVE BY THE EXCHANGE NOR HAD HE BEEN QUALIFIED BY THE EXCHANGE TO HANDLE DIRECT ACCESS BUSINESS. 4.ENGAGED IN ACTS DETRI-MENTAL TO THE INTEREST AND WELFARE OF THE EXCHANGE BY, ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1997, A)FAILING TO SUBMIT TO THE EXCHANGE COMPLETE AND ACCURATE FORMS 600TC; AND B)FAILING TO PAY REQUIRED FLOOR, MEMBERSHIP AND/OR SERVICE FEES TO THE EXCHANGE; (CONT’D IN #13 BELOW)
- Resolution: Decision
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $50,000.00 Sanctions: Censure Sanctions: Bar
- Sanction Details: 8/13/99 DECISION HPD 99-105 ISSUED BY NYSE HEARING PANEL. DECISION: VIOLATED EXCHANGE RULE 117.10 IN THAT HIS BADGE NUMBER WAS USED IN STOCK EXECUTIONS, WHEN HE WAS NOT ENTITLED TO EXECUTION; VIOLATED EXCHANGE RULE 132.30 IN THAT HIS BADGE NUMBER WAS USED FOR TRANSAC-TIONS FOR WHICH HE WAS NOT THE EXECUTING BROKER; ALLOWED SPECIALISTS TO USE HIS FLOOR REPORTS FOR TRANSACTIONS THEY INITIATED AND EXECUTED, WHERE HE DID NOT REPRESENT THE ORDER, THEREBY SUBMITTING INACCURATE AUDIT TRAIL INFORMATION; IMPROPRELY USED ANOTHER MEMBER’S FLOOR REPORT STATIONERY; VIOLATED EXCHANGE RULE 345(A) BY REGULARLY ACCEPTING PUBLIC CUSTOMER ORDERS WHEN NOT QUALIFIED TO DO SO; FAILED TO SUBMIT ACCURATE FORMS 600 TC AND FAILED TO PAY REQUIRED FEES; VIOLATED EXCHANGE RULE 401 BY CONDUCTING A PUBLIC BUSINESS WITHOUT COMPLYING WITH RELEVANT RULES; VIOLATED EXCHANGE RULE 382(A) BY EFFECTING BUSINESS AS AN INTRODUCING MEMBER WITHOUT BEING PARTY TO AN APPRO-PRIATE CARRYING AGREEMENT; VIOLATED EXCHANGE RULES 123 AND 410(A)(2) BY FAILING TO APPROPRIATELY CREATE, TIME-STAMP AND RETAIN RECORDS OF ORDERS ENTERED BY A PUBLIC CUSTOMER; VIOLATED EXCHANGE RULE 342.13(B) BY REGULARLY ACCEPTING PUBLIC CUSTOMER ORDERS WHEN HE WAS NOT QUALIFIED AS A COMPLIANCE SUPERVISOR; VIOLATED SEC RULES 17A-3 AND 17A-4 AND EXCHANGE RULE 440 BY FAILING TO MAINTAIN ACCURATE BOOKS AND RECORDS. CONSENT TO CENSURE, ONE YEAR BAR, AND $50,000 FINE.**SUMMARY SUSPENSION ISSUED FOR FAILURE TO PAY FINE, EFFECTIVE 11/27/99.
- Broker Comment: (CONT’D FROM #7 ABOVE) AND C) IMPROPERLY USING ANOTHER MEMBER(S) FLOOR STATIONERY. 6.VIOLATED EXCHANGE RULE 401 IN THAT ON OR ABOUT AND BETWEEN 1994 TO 1997 AND/OR 1996 TO 1998 ON ONE OR MORE OCCASIONS, HE CONDUCTED A PUBLIC BUSINESS WITHOUT COMPLYING WITH RELEVANT EXCHANGE AND SEC RULES APPLICABLE TO MEMBERS CONDUCTING SUCH BUSINESS. 7.VIOLATED EXCHANGE RULE 382(A) IN THAT ON ONE OR MORE OCCASIONS IN OR ABOUT AND BETWEEN 1994 AND 1997 HE EFFECTED BUSINESS FOR A PUBLIC CUSTOMER AS AN INTRODUCING MEMBER WITHOUT BEING PARTY TO AN APPROPRIATE CARRING AGREEMENT. 8.VIOLATED EXCHANGE RULES 123 AND 410(A)(2) IN THAT ON ONE OR MORE OCCASIONS IN OR ABOUT AND BETWEEN 1994 TO 1997 HE FAILED TOAPPROPRIATELY CREATE, TIME-STAMP AND RETAIN RECORDS OF ORDERS ENTERED BY A PUBLIC CUSTOMER. 9.VIOLATED EXCHANGE RULE 342.13(B) IN THAT ON ONE OR MORE OCCASIONS IN OR ABOUT AND BETWEEN 1994 AND 1997, WHILE REGULARLY ACCEPTING ORDERS FROM ONE OR MORE PUBLIC CUSTOMERS, HE WAS NOT A QUALIFIED COMPLIANCE SUPERVISOR, NOR HAD HE BEEN OTHERWISE APPROVED OR QUALIFIED BY THE EXCHANGE TO HANDLE DIRECT ACCESS BUSINESS. 10.VIOLATED SEC RULES 17A-3 AND 17A-4 AND EXCHANGE RULE 440 IN THAT ON ONE OR MORE OCCASIONS IN OR ABOUT AND BETWEEN 1994 AND 1998 HE FAILED TO MAINTAIN ACCURATE BOOKS AND RECORDS. B.THE IMPOSITION BY THE EXCHANGE OF A PENALTY OF A CENSURE, A ONE YEAR BAR FROM MEMBERSHIP, ALLIED MEMBERSHIP, APPROVED PERSON STATUS AND FROM EMPLOYMENT OR ASSOCIATION IN ANY CAPACITY WITH ANY MEMBER OR MEMBER ORGANIZATION, AND A FINE OF $50,000. *9/23/99*THE DECISION IS FINAL AND EFFECTIVE IMMEDIATELY. **SUMMARY SUSPENSION ISSUED FOR FAILURE TO PAY FINE, EFFECTIVE 11/27/99.**6/29/01**SUSPENSION HAS BEEN REMOVED DUE TO PAYMENT.**CONTACT: PEGGY GERMINO (212)656-8450
DISCLOSURE 2 –
- Event Date: 2/18/1999
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: HPD# 99-88
- DocketNumberAAO: 99-88
- Initiated By: NYSE DIVISION OF ENFORCEMENT
- Allegations: **06/18/1999** STIPULATION AND CONSENT TO PENALTY FILED BY NYSE DIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS THAT HE: A.1. VIOLATED EXCHANGE RULE 117.10 IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HIS BADGE NUMBER WAS USED FOR EXECUTIONS IN NUMEROUS STOCKS WHERE HE WAS NOT REPRESENTING THE ORDER IN THE CROWD, HAD NOT LEFT THE ORDER WITH THE SPECIALISTS FOR EXECUTION, NOR WAS OTHERWISE ENTITLED TO EXECUTION. 2. VIOLATED EXCHANGE RULE 132.30 IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HIS BADGE NUMBER WAS USED FOR TRANSACTIONS FOR WHICH HE WAS NOT THE EXECUTING BROKER. 3. ENGAGED IN CONDUCT INCONSISTENT WITH JUST AND EQUITABLE PRINCIPLES OF TRADE IN THAT ON ONE OR MORE OCCASIONS: A) IN OR ABOUT AND BETWEEN 1996 AND 1998 HE ALLOWED TWO SPECIALISTS ON THE FLOOR OF THE EXCHANGE TO USE HIS FLOOR REPORTS FOR TRANSACTIONS THEY INITIATED AND EXECUTED, USING HIS BADGE NUMBER, FOR THE ACCOUNT OF THEIR RELATIVE, WHERE HE DID NOT REPRESENT THE ORDER IN ANY WAY, AND THEREFORE INACCURATE INFORMATION WAS SUBMITTED FOR CLEARANCE AND AUDIT TRAIL PURPOSES; AND B)IN OR ABOUT AND BETWEEN 1994 AND 1997 HE IMPROPERLY USED ANOTHER EXCHANGE MEMBER?S FLOOR REPORT STATIONERY TO REPORT TRANSACTIONS HE EXECUTED FOR ONE OF HIS CUSTOMERS, WHERE SUCH ORDERS DID NOT COME THROUGH THE OTHER MEMBER?S BOOTH. 3.VIOLATED RULE 345(A) IN THAT ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1998, HE REGULARLY ACCEPTED ORDERS FROM A PUBLIC CUSTOMER AT A TIME WHEN HE WAS NOT APPROVED AS A REGISTERED REPRESENTATIVE BY THE EXCHANGE NOR HAD HE BEEN QUALIFIED BY THE EXCHANGE TO HANDLE DIRECT ACCESS BUSINESS. 4. ENGAGED IN ACTS DETRIMENTAL TO THE INTEREST AND WELFARE OF THE EXCHANGE BY, ON ONE OR MORE OCCASIONS, IN OR ABOUT AND BETWEEN 1996 AND 1997, A) FAILING TO SUBMIT TO THE EXCHANGE COMPLETE AND ACCURATE FORMS 600TC; AND (CONTINUED IN PARAGRAPH #13)
- Resolution: Dismissed
- Sanction Details ::
- Sanction Details: **07/13/1999** IN THE MATTER OF DAVID EILENBERG HPD 99-88 – REJECTION OF STIPULATION OF FACTS AND CONSENT TO PENALTY
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- T3 TRADING GROUP, LLC (CRD#: 154431) :: 10/21/2019 – 2/24/2020 :: NEW YORK, NY
- T3 TRADING GROUP, LLC (CRD#: 154431) :: 7/28/2016 – 10/18/2019 :: NEW YORK, NY
- T3 TRADING GROUP, LLC (CRD#: 154431) :: 6/17/2015 – 4/21/2016 :: NEW YORK, NY
- QUATTRO M SECURITIES INC. (CRD#: 39289) :: 9/2/2009 – 6/16/2015 :: NEW YORK, NY
- T3 TRADING GROUP, LLC (CRD#: 154431) :: 11/7/2014 – 12/19/2014 :: NEW YORK, NY
- WTS PROPRIETARY TRADING GROUP LLC (CRD#: 148117) :: 7/25/2011 – 11/7/2014 :: NEW YORK, NY
- TAG SECURITIES CORP. (CRD#: 104076) :: 5/21/2007 – 9/11/2009 :: NEW YORK, NY
- ALFANO, PATRICK MICHAEL (CRD#: 136116) :: 1/22/2007 – 5/22/2007 :: NEW YORK, NY
- B & B SECURITIES, INC. (CRD#: 32664) :: 3/1/2006 – 1/9/2007 :: NEW YORK, NY
- MURPHY & DURIEU (CRD#: 6292) :: 9/13/2001 – 3/1/2006 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including David Eilenberg, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report David Eilenberg
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
David Eilenberg – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (2347640) for the broker – David Eilenberg
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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