FINRA Suspends Michael Mandel After Selling Away
Michael Mandel (Michael Walter Mandel, CRD# 4939165) is a currently registered broker and investment advisor last registered with LPL Financial (CRD:#6143) of Upper Saddle River, NJ. His previous employers were Royal Alliance Associates, Inc. (CRD:# 23131), of Old Tappan, NJ, and UBS Financial Services (CRD:# 8174 ) of Paramus, NJ. He has been in the industry since 2005.
LPL Financial discharged Mandel on 1/19/2022 for “selling away.” He allegedly solicited both firm and non-firm customers to invest in a company not approved by LPL Financial. He failed to notify the firm of his intentions as well as request the firm’s approval in writing.
Mandel was briefly associated with Randy Neumann Wealth Management after LPL Financial. This firm discharged him a few days after LPL Financial, on 1/22/22, due to the allegations.
FINRA began an investigation into Mandel’s activities and determined that he had solicited many customers for an investment into a tequila production company. Some of the customers were from LPL Financial, some were not.
These individuals invested a total of $815,000. Mandel invited them to the company’s promotional events, introduced them to the founder of the company, and gave them documents about the investment. Mandell received a payment of $5,635.35 from the tequila company and was also expected to receive a portion of the Founders’ equity in the company.
Additionally, Mandel falsely stated on his firm’s annual compliance questionnaire specifically that he had not participated in private security transactions outside of the firm.
Mandel signed a FINRA acceptance waiver and consent letter containing:
- A civil fine of $5000
- A disgorgement of $5,635.35 that he received from the tequila company
- A suspension in all capacities for seven months, beginning on 3/7/2022 and ending on 10/6/2022
Mandel consented to the sanctions without admitting or denying the findings. This includes the entry of findings that he participated in private securities transactions without requesting or receiving approval in writing from LPL Financial.
Mandel has one prior disclosure, a customer dispute filed on 8/29/2013. In it, the client requests damages of $7,945.00. This client alleged that Mandel lead them to “believe that the yield on his municipal bonds purchased in June and July 2013 would be the same as coupon rate of the bond.” This dispute was denied.
Did You Invest With Michael Mandel?
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