Michael Mandel Suspended by FINRA

Michael Mandel (CRD #: 4939165), a broker previously registered with LPL Financial LLC, was suspended by FINRA. This information is from Michael Mandel’s BrokerCheck record, accessed on March 28, 2022. You can find more information below about his conduct as a broker.

Michael Mandel allegedly participated in private securities transactions. He is accused of soliciting 18 investors for private securities transactions, seven of whom were firm customers, to invest a total of $815,000 in a tequila production company. Michael Mandel allegedly received $5,635.35 from the tequila company and expected to receive a portion of the founder’s equity in the company.

During the relevant period, Michael Mandel’s employer member firm prohibited registered representatives from participating in private securities transactions. Furthermore, the founder of the tequila company has since pled guilty to charges that he made false and misleading statements to investors and misused investor funds,

Michael Mandel consented to the following sanctions:

• A seven-month suspension;
• A $5,000 fine; and
• Disgorgement of $5,635.35 plus interest.

You can find a copy of the Letter of Acceptance, Waiver, and Consent here.

FINRA Rule 3280 states that “no person associated with a member firm shall participate in any manner with a private securities transaction except in accordance with the requirements of this rule.” The rule further requires that an associated person should provide written notice describing in detail the proposed transaction and the person’s proposed role to the member firm. A violation of this rule is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to “observe high standards of commercial honor and just and equitable principles of trade.”

Employment Termination

On January 19, 2022, LPL Financial fired Michael Mandel following allegations that he solicited customers for investments in a company that the firm did not approve.

Background Information

Michael Mandel has passed the following exams:

• Series 66 – Uniform Combined State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

Prior to working at LPL Financial, Michael Mandel has also worked as a registered broker at Royal Alliance Associates, Inc. (CRD #: 23131) and UBS Financial Services, Inc. (CRD #:8174)

Kurta Law Can Help

If you worked with Michael Mandel and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated on behalf of investors recovering their investment losses from stockbrokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors. We work on a contingency basis, which means that the firm only earns a fee if our securities attorneys recover money on your behalf. Reach out and we can tell you what steps to take to restore your lost funds.