Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker David Elgart (Elgart), previously associated with Sequoia Investments, Inc., has at least one disclosable event. These events include one tax lien, alleging that Elgart recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on January 04, 2024.
Without admitting or denying the findings, Elgart consented to the sanctions and to the entry of findings that he engaged in activities requiring registration while unregistered and statutorily disqualified and engaged in activities requiring registration. The findings stated that in 2016 the Office of Hearing Officers (OHO) issued a decision finding that Elgart willfully failed to timely update his Form U4 to disclose five tax liens. Elgart thereafter timely appealed this decision to the National Adjudicatory Counsel (NAC), which stayed the imposition of his statutory disqualification. Elgart became statutorily disqualified in 2017, after the NAC issued its decision affirming OHO’s findings. In November 2018, Elgart’s member firm filed a Form U5, terminating his registration. In September 2019, the firm filed a Membership Continuance Application (MC-400 Application) seeking to permit Elgart to reassociate with the firm. Elgart knew that he was not permitted to associate with the firm or effect any transaction in-or induce or attempt to induce the purchase or sale of-any municipal security while the MC-400 Application was pending. Nonetheless, while the MC-400 Application was pending, Elgart used the login credentials and email addresses of other registered representatives to conduct municipal securities business. Elgart’s activities included discussing and recommending transactions to customers, communicating with firm vendors about trade corrections, and logging on to the firm’s systems to effect trades on behalf of customers. FINRA later approved the MC-400 Application.
