Michael Walter Mandel (CRD #4939165, Suffern, New York)

March 2, 2022 – An AWC was issued in which Mandel was assessed a deferred fine of $5,000, suspended from association with any FINRA member in all capacities for seven months, and ordered to pay deferred disgorgement in the amount of $5,635.35, plus interest. 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 one of the firm’s annual compliance questionnaires that he had not participated in private securities transactions outside the firm. Subsequently, the founder of the tequila company pled guilty to charges that he made false and misleading statements to investors in the company and misused investor funds. In addition, the SEC filed a complaint in the U.S. District Court for the Southern District of New York against the founder, alleging that he made material misrepresentations to investors in the tequila company and misappropriated investors’ funds for personal use. The U.S. District Court issued a judgment against the founder and enjoined him from further violations of the securities laws. The suspension is in effect from March 7, 2022, through October 6, 2022. (FINRA Case #2021070900301)