Michael Anthony Tavel (CRD# 4862463) was recently suspended from acting as a broker by the Financial Industry Regulatory Authority. Tavel was registered with broker-dealer LPL Financial LLC from 2004-2019, operating out of Indianapolis, Indiana. Tavel was also providing investment advice through Charter Advisory Corporation, an SEC-registered Investment Adviser, as well as providing tax services and insurance products through Tavel Insurance & Financial Services, LLC.
Tavel Consented To 18-Month Suspension And $20,000 Fine
According to FINRA’s Letter of Acceptance, Waiver and Consent (AWC), from 2017-2019, Michael Tavel participated in improper private securities transactions, at least one of which Tavel recommended “without having a reasonable basis to believe that it was suitable.” Specifically, FINRA states the following in its AWC:
- Tavel agreed to act as a placement agent for a private issuer purportedly in the business of making commercial loans . . . In 2018, the issuer and its chairman were charged by the SEC with fraud and [the investor] lost his entire investment.
- Tavel agreed to act as a placement agent for an oil-extraction company . . . Tavel received a total of $19,700 in commissions for the transactions.
- Tavel failed to provide a written disclosure to LPL in connection with any of these investments, which were done away from the firm, and falsely attested to LPL in August 2018 that he had not solicited any unapproved private placements.
According to the AWC, this conduct violated FINRA Rule 3280 (Private Securities Transactions of an Associated Person), 2111 (Suitability), and 2010 (Standards of Commercial Honor and Principles of Trade). Moreover, the AWC notes that Tavel was discharged from LPL for violating LPL’s private securities transaction policy and violating LPL’s customer complaint policy.
Michael Tavel Has Settled One Customer Complaint
According to Tavel’s FINRA BrokerCheck Report, in 2019, Tavel contributed $25,000 to a settlement wherein a customer complained that while employed by LPL, Tavel “made an unsuitable recommendation and misrepresented his return in connection with a memorandum of indebtedness that the customer entered into with a private company.
Tavel’s Misconduct Commonly Referred To As “Selling Away”
The term “selling away” refers to when brokers recommend private investments that were never approved by their employing brokerage firms. The investments are “private” in the sense that they are typically not registered with state or federal securities regulators and thus not subject to the oversight necessary to detect and prevent fraud. Unfortunately, these transactions often end up supporting illicit or nonexistent business ventures, or the funds are simply stolen by the broker.
Tavel’s FINRA suspension and termination from LPL and Charter Advisory Corporation was for violation of company policies and FINRA Rules governing private securities transactions, i.e. “selling away”. The commercial loan company and the oil extraction company Tavel was recommending that his customers invest in were private investments that Tavel should have reported to his employing firm, LPL. Unfortunately, at least one of Michael Tavel’s recommendations is now the subject of a Securities Exchange Commission fraud case.
Brokerage firms are required to supervise their registered representatives, the investments they recommend, and customer accounts and implement reasonable and appropriate policies and procedures to prevent “selling away.”
Did You Lose Money Investing With Michael Tavel And LPL?
If you experienced other investment losses as a customer of Tavel at LPL Financial Services, LLC, you may have a claim in FIRNA Arbitration to recover your losses.
Silver Law Group specializes in fighting for investors who lost money to brokers and financial advisors who took advantage of their positions as trusted financial professionals to defraud their clients of hard-earned savings. Silver Law Group operates on a contingency-fee basis, so the firm does not profit unless we recover funds for you. Contact Silver Law Group toll free at (800) 975-4345 or e-mail email@example.com for a confidential consultation. Our attorneys represent investors nationwide in investment fraud disputes.