Michael Tanha Allegedly Engaged in Five Outside Business Activities
Ex broker Michael Milad Tanha, between January 2015 and May 2017, allegedly engaged in five outside business activities without providing prior written notice to Merrill Lynch, Pierce, Fenner & Smith Incorporated, according to a FINRA Letter of Acceptance, Waiver, and Consent (AWC) under review by investor rights attorney Alan Rosca.
In April 2015, Tanha allegedly co-founded Entity A, a corporation created to enable its clients to communicate with celebrities on social media for a fee, according to the aforementioned AWC.
From April 2015 through December 2016, Tanha was reportedly Entity A’s treasurer, sat on its board, and received 18% of Entity A’s stock, which he jointly held with one of the company’s co-founders, the AWC notes. Tanha’s reported responsibilities included marketing, capital raising, and working with lawyers and accountants to incorporate Entity A and pay its taxes, the AWC states.
He allegedly did not provide prior written notice to Merrill Lynch regarding his involvement in Entity A until December 28, 2015, when he requested permission from the Firm to engage in activities related to Entity A, the AWC details.
Merrill Lynch allegedly denied Tanha’s request the same day, and although Tanha allegedly officially resigned from his position as treasurer of Entity A on January 6, 2016, and purportedly told Merrill Lynch that he was no longer working for Entity A, he continued to sit on, the AWC reports.
Tanha, without admitting or denying the findings, consented to the sanctions and to the entry of findings that he allegedly engaged in outside business activities without providing prior written notice to his member firm, or informing the firm of the compensation received, or of the expectation of compensation from the outside business activities, the AWC reports.
Investor rights attorney Alan Rosca, of the Rosca Scarlato LLC law firm, is investigating activity related to former broker Michael Tanha’s alleged unapproved five outside business activities. Investors who believe they may have lost money in activity related to Michael M. Tanha’s alleged unapproved five outside business activities are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options.
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Ex Broker Michael Tanha Fined $15,000 & Suspended by FINRA
Allegedly, Tanha submitted annual compliance questionnaires to Merrill, neither of which accurately disclosed these activities, and said findings also stated that in connection with the outside business activities, Tanha allegedly participated in private securities transactions, the sale of which totaled $500,000, without providing prior written notice to or receiving approval from Merrill Lynch, the AWC states.
Allegedly, he solicited securities investments in one of the outside business entities from investors, two of whom were Merrill customers, and these investors purportedly purchased a total of $350,000 of the entity’s stock, as reported on his FINRA Brokercheck page.
On the compliance questionnaire Tanha submitted to Merrill Lynch, he allegedly inaccurately stated that he did not recommend or refer any sales, purchases, or private securities transactions that are not offered through the firm, or that the firm did not approve or sponsor, the aforementioned AWC notes.
Tanha allegedly then raised capital for another outside business entity, and, in connection with this work, Tanha allegedly solicited and facilitated securities investments from individuals, who invested a total of $150,000 in the entity, the AWC states.
Former broker Michael Tanha, as a result of the aforementioned alleged behavior, purportedly violated FINRA laws. Tanha, as a result, was suspended and fined $15,000 the AWC reports.
He was subsequently permitted to voluntarily resign by Merrill Lynch, Pierce, Fenner & Smith Incorporated, according to a Voluntary Resignation Disclosure on Tanha’s FINRA BrokerCheck Report filed on May 17, 2017.
Tanha has only three years of experience in the securities industry, and was registered at the following firms:
- Merrill Lynch, Pierce, Fenner & Smith Incorporated, Beverly Hills, CA— October 8, 2014 to June 14, 2017
- Northwestern Mutual Investment Services, LLC, Las Vegas, NC— July 16, 2013 to September 16, 2014
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.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and are currently investigating Michael Tanha’s alleged unapproved five outside business activities. The firm takes most cases of this type on a contingency fee basis and advance the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, and has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of former broker Michael Tanha’s alleged unapproved five outside business activities may contact attorney 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.
