Previously registered LPL broker Michael Tavel has been suspended and fined by FINRA on allegations of engaging in three private securities transactions away from the firm totaling $265,000, according to FINRA’s Letter of Acceptance, Waiver and Consent(AWC), under review by investor rights attorney Alan Rosca.
Investor rights attorney Alan Rosca of the Rosca Scarlato LLC law firm is investigating alleged participation of Michael Anthony Tavel in private securities transactions. Investors who are concerned about their investments with LPL broker Michael Tavel are encouraged to contact Alan Rosca for a free consultation and discussion of recovery options, or to provide any useful information. Call 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Michael Tavel Allegedly Sold Securities Away from His Firm, Made an Unsuitable Recommendation and Made Misrepresentations to an Investor
FINRA began an investigation after receiving a tip consistent with a disclosure made on April 23, 2019.
According to the AWC, in August 2017, Tavel allegedly acted as a placement agent for a private issuer purportedly in the business of making commercial loans. He allegedly provided an LPL customer with the private issuer’s manufacturing materials and explained a potential investment with the private issuer to the LPL customer.
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In November 2017, the customer reportedly purchased a $25,000 note and Tavel allegedly received $562.50 in commissions, the AWC notes. Other than reviewing marketing material provided by the private issuer, Tavel reportedly did not conduct meaningful due diligence before recommending the investment to his customer and the investment was allegedly unsuitable.
In February 2019, the customer allegedly complained about the loss of their $25,000 investment and in March 2019 Tavel allegedly offered to reimburse the customer for the loss in exchange for the customer to withdraw their complaint, according to the AWC. He allegedly did not inform or receive authorization from LPL to do so. By attempting to settle the customers complaint away from the firm, Michael Tavel allegedly violated FINRA Rules.
In addition, Tavel allegedly agreed to act as a placement agent for an oil-extraction company in June 2018. Two of his LPL customers invested in private placements connected to the oil-extraction company; one customer invested $200,000 and the other $40,000. Michael Anthony Tavel allegedly received $19,700 in commissions for the transactions, the AWC notes.
LPL broker Michael Tavel allegedly failed to provide written disclosure to LPL in connection with any of the aforementioned investments, which were done away from the firm. Tavel investors should be aware that Michael A. Tavel falsely attested to LPL in August 2018 that he did not solicit any unapproved private placements, as stated on the AWC.
As a result, Tavel received an 18 month suspension from associating with any FINRA member firm in all capacities and a fine to the tune of $20,000. The suspension will be in effect until June 20, 2022.
Michael Anthony Tavel signed the AWC accepting and consenting to FINRA’s findings, without admitting or denying the findings, and solely for the purposes of the proceeding brought by or on behalf of FINRA , prior to a hearing and without an adjudication of any issue of law or fact.
Michael Tavel Subject to a Customer Dispute Disclosure Alleging Unsuitability and Misrepresentation
According to Tavel’s FINRA Brokercheck page, he was the subject of one settled customer dispute. A Michael Anthony Tavel customer filed a dispute in February 2019 alleging unsuitable recommendation and misrepresentation of return in connection with a memorandum of indebtness that the customer entered into a private company.
The employing firm when the alleged misconduct occurred was allegedly LPL and the product type involved was a “promissory note”. The customer was seeking $25,000 for the alleged damages and received a settlement of $25,00 in April 2019.
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Michael Tavel Was Registered with FINRA for 14 Years
Michael A. Tavel joined the securities industry in 2004 according to this FINRA Brokercheck page. Tavel started working for LPL Financial located in Indianapolis, Indiana in October 2004. He remained there until April 2019 when he was terminated for his alleged participation in private securities transactions without prior notice to the firm and his alleged attempt to settle a customer complaint without prior notice or approval from the firm.
Tavel is currently an active investment adviser at Tavel Insurance & Financial Services, according to his IAPD report.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Potential Options for Michael Tavel Investors
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to former LPL broker Michael Tavel’s alleged participation in private securities transactions.
The firm takes cases of this type on a contingency fee basis; no fees or costs, if no recovery; firm advances costs and investor is required to pay only if there is a recovery. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases arising out of investment-related misconduct.
Investors who are concerned they may have lost money with Michael Tavel’s alleged participation in private securities transactions may contact Alan Rosca for a free, no obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
