Securities Arbitration Lawyers Blog
FINRA Suspends Registered Individuals For Violations Of FINRA Rules January 2021
According to FINRA Disciplinary actions for January 2021, the following individuals were suspended from FINRA and cannot currently work for a FINRA brokerage firm for failing to provide FINRA with information it requested or to keep information current with FINRA pursuant to FINRA rules. However, these individuals remain bound by the securities arbitration agreement to arbitrate any disputes between themselves and their former customers:
| NAME | FORMER EMPLOYERS |
| Jason Anderson | Merrill Lynch, Pierce, Fenner & Smith Incorporated |
| LPL Financial LLC | |
| Solomon Apprey | Pruco Securities, LLC |
| AXA Advisors, LLC | |
| Harry Lum, Jr. | Horace Mann Investors, Inc. |
| Allstate Financial Services, LLC | |
| Timothy Melvin | Horace Mann Investors, Inc. |
| Jeffrey Sandwell | LPL Financial LLC |
| Trilogy Financial Services | |
| Jon Scheier | Edward Jones |
When the coronavirus sent Americans home, many people began investigating new projects, new hobbies and opportunities. You may know someone who has learned old-fashioned skills like gourmet cooking, quilting, sewing or other crafts, or taken up a new fitness routine. Others decide to learn new skills or improve the ones they have, from project management to SEO digital marketing and beyond.Still others who are home more have the time to learn more about investing as something that they postponed for “another day.” If you’ve been learning about investing you may have noticed a wide range of less expensive stocks available, frequently called “microcaps.” Some of them may be particularly appealing. But if you aren’t yet a sophisticated investor, it’s best to be cautious until you learn how everything works. ![Steven Luftschein (Steven Robert Luftschein CRD# 2690117) was recently barred from acting as a broker by the Financial Industry Regulatory Authority (FINRA) following an investigation into allegations that Luftschein violated federal securities laws. Luftschein, who operated in the greater New York area, was registered with Aegis Capital Corp. from 2013-2016, and then with Joseph Stone Capital LLC for the years 2017-2018. FINRA Filed A Disciplinary Complaint In May 2020 In May 2020, the FINRA Department of Enforcement filed a Complaint against Luftschein alleging that “while associated with Aegis Capital Corp. . . . [Luftschein] churned and excessively traded the accounts of three of his Firm customers . . .”. Specifically, FINRA alleged: Luftschein frequently engaged in unauthorized trading by making purchases and sales of securities without first discussing the transactions with Customers and obtaining their authorization; Luftschein’s churning and excessive trading was unsuitable and caused losses of more than $261,000 in the Customers’ accounts; and Luftschein’s trading in the Customers’ accounts generated gross sales credits and commissions of approximately $136,200, with Luftschein receiving a substantial percentage of this amount. For allegedly engaging in this misconduct, FINRA brought causes of action for (1) Churning in violation of Section 10(b) of the Securities Exchange Act, Rule 10b-5, and FINRA Rules 2020 and 2010, (2) Excessive Trading/Quantitative Unsuitability in violation of FINRA Rules 2111 and 2010, and (3) Unauthorized Trading in violation of FINRA Rule 2010. In January 2021, Luftschein ultimately accepted an offer of settlement wherein he agreed to a bar from association with any FINRA member firm in any capacity.](https://www.silverlaw.com/blog/wp-content/uploads/2021/02/Steven-Luftschein.jpg)
Steven Luftschein (Steven Robert Luftschein CRD# ![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.](https://www.silverlaw.com/blog/wp-content/uploads/2021/02/Michael-Tavel.jpg)
Michael Anthony Tavel (
Sumitro Pal (CRD# 
In January 2021, the Securities and Exchange Commission (SEC) filed a complaint against Eric C. Malley (Malley) and MG Capital Management LP concerning what the SEC characterized as “an offering fraud orchestrated by Malley, the founder and principal of MG Capital, the investment manager of two real estate funds.” The SEC’s Complaint can be found 
In January 2021, Steadfast Apartment REIT Inc. announced that it is lowering its distribution rate and limiting share repurchases, effective February 1, 2021. Steadfast Apartment REIT is a publicly registered non-traded real estate investment trust (“REIT”). Steadfast invests in apartment communities across the United States.