- March 16, 2022
- LPL Financial
Michael Mandel (CRD#: 4939165) is a previously registered Broker and previously registered Investment Advisor.
He entered the securities industry in 2005 and previously worked for LPL Financial, LLC; Royal Alliance Associates, Inc.; and UBS Financial Services, Inc..
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in March 2022, FINRA sanctioned Michael Mandel, assessing a civil and administrative fine of $6,000, ordering a disgorgement of $5,635.34, and suspending him from all capacities for seven months beginning March 7, 2022 and ending October 6, 2022. The FINRA sanction states, “Without admitting or denying the findings, Mandel consented to the sanctions and to the entry of findings that he participated in private securities transactions without providing prior written notice to, or receiving prior approval from his member firms. The findings stated that Mandel solicited investors, some of whom were firm customers, to invest a total of approximately $815,000 in a tequila production company. Mandel invited investors to promotional events for the company, introduced them to the company’s founder, and provided investors with documents regarding the opportunity to invest. Mandel received $5,635.35 from the tequila company and expected to receive a portion of the founder’s equity in the company. In addition, Mandel falsely stated on his firm’s annual compliance questionnaire that he had not participated in private securities transactions outside the firm.”
For a copy of the FINRA sanction, click here.
In addition, Michael Mandel has been the subject of one customer complaint and an employment disclosure, including the following:
- January 2022 — “Solicited and introduced customers and non-customers to investment into a Firm-unapproved company, without prior notice to or approval from Firm.” Michael Mandel was discharged by LPL Financial, LLC.
- August 2013 — “CLIENT ALLEGES THAT HE WAS LED 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.”
For a copy of Michael Mandel’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
FINRA Rule 3280 provides: “No person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule. Prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.”
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at firstname.lastname@example.org.