Michael Walter Mandel, Formerly of LPL Financial, Suspended by FINRA Following Allegations He Participated in a Private Securities Transaction Without Approval

INVESTORS: Former LPL Financial broker Michael Walter Mandel was suspended by FINRA following allegations that he participated in private securities transactions without providing prior written notice to, or receiving prior approval from his member firms.

Michael Walter Mandel (CRD: 4939165) was registered as a broker with LPL Financial from 2015 until 2022. Previously, Mandel was registered as a broker with Royal Alliance Associates from 2008 until 2015.

Mandel has four disclosures on his BrokerCheck report. One customer dispute filed against Mandel was denied.

March 2022 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: 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.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $5,000.00

Sanctions: Disgorgement

Amount: $5,635.35

Sanctions: Suspension

Registration Capacities Affected: All Capacities

Duration: Seven Months

Start Date: 3/7/2022

End Date: 10/6/2022

January 2022 Employment Separation After Allegations

Firm Name: Randy Neumann Wealth Management

Termination Type: Discharged

Allegations: Mr. Mandel was terminated by LPL Financial for selling away. Mr. Mandel consented to FINRA 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 LPL Financial.

January 2022 Employment Separation After Allegations

Firm Name: LPL Financial

Termination Type: Discharged

Allegations: Solicited and introduced customers and non-customers to investment into a Firm-unapproved company, without prior notice to or approval from Firm.

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