Securities Regulators Uphold Shlomi S. Eplboim’s Ban from the Securities Industry Relating to an Investigation Involving Eplboim’s Outside Business Activites

Shlomi S. Eplboim, formerly registered with Brookstone Securities, Inc., was barred from the securities industry by the Financial Industry Regulatory Authority (“FINRA”) in connection with allegations that he failed to produce documents in accordance with an investigation conducted by FINRA that was examining Eplboim’s outside business activities. Eplboim’s ban from the securities industry was upheld in a recent decision issued by the National Adjudicatory Council of FINRA.

The Peiffer Rosca securities practice attorneys Jason Kane and Joe Peiffer are investigating the matter.

Eplboim, prior to joining Brookstone, formed two limited liability companies, Epandco Real Estate and Epandco Holdings, LLC (collectively, “Epandco”), which owned low-income rental properties in Tennessee, according to the decision. Approximately 20 of Eplboim’s friends and clients, including Brookstone customers, invested in Epandco, according to the decision. Eplboim managed the entities for the investors, but he did not have an ownership interest, according to the decision

Eplboim disclosed Epandco as an outside business activity to Brookstone when he joined the firm and Brookstone approved the activity, according to the decision.

In May 2011, both Epandco Real Estate and Epandco Holdings, LLC filed for bankruptcy to protect their assets and properties from foreclosure. In October 2011, Eplboim filed for personal bankruptcy because he and his spouse personally guaranteed a large loan for Epandco, according to the decision.

FINRA staff commenced an examination in August 2011 of Eplboim’s outside business activities for the period of March 2009 through August 2011. FINRA staff sought information concerning Epandco because it had been two years since FINRA’s last examination of Eplboim’s outside business activities. FINRA staff also found an anonymous allegation posted on the “Rip-off Report” website alleging that Eplboim and Epandco stole $100,000 from an investor, according to the decision.

In September 2011, FINRA sent Eplboim a request for documents related to Epandco. FINRA staff wanted the documents to examine the use and flow of money at Epandco and to determine whether Eplboim had misappropriated any investor funds. FINRA also wanted Eplboim’s personal emails because an earlier production revealed that Eplboim had used his personal email account to communicate with an advertiser regarding bond advertising.

Eplboim never fully complied with FINRA’s request for documents, according to FINRA, and was subsequently barred from the securities industry by FINRA’s Department of Enforcement.

The Peiffer Rosca attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with virtual currency investments. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Rosca, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.

Peiffer Wolf (1270 Posts)


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