NVESTOR ALERT: FINRA Suspends, Fines MICHAEL TANHA
Soreide Law Group is investigating possible claims on behalf of those who invested with Merrill Lynch securities broker Michael Tanha (CRD#: 6022108, Beverly Hills, California). The Financial industry Regulatory Authority (“FINRA”) recently issued Michael Tanha a 10-month suspension and $15,000 fine pursuant to Tanha’s May 1, 2019 submission of Letter of Acceptance, Waiver and Consent #: 20170546503-01, which FINRA accepted May 6, 2019. Evidently, Michael Tanha violated FINRA Rules 3270, 3280 and 2010 for engaging in private securities transactions and outside business activities. Here’s a summary of the disciplinary action against him:
Michael Tanha Engages In Outside Business Activities Involving Entity A
Apparently, Michael Tanha created Entity A in 2015 to provide customers a fee-based service to “communicate with celebrities.” In addition to Tanha owning an 18% stake in the company, he was a board member and controlled its marketing and capital raising obligations. Apparently, for several months, Tanha performed these duties without notifying Merrill Lynch. Notably, Merrill Lynch did not give Tanha permission to engage in activities pertaining to Entity A. Supposedly, Tanha ignored Merrill Lynch and continued doing substantive work for the company.
Michael Tanha Solicits Merrill Lynch Customers To Purchase Entity A Investments
FINRA Department of Enforcement also says that from 2015 to 2016, Tanha solicited Merrill Lynch customers’ investments in Entity A. Evidently, Tanha persuaded one investor to hand over $250,000 for Entity A’s stock. He also persuaded two more investors to buy $100,000 in convertible debt. During this time, Tanha concealed these private securities transactions. Indeed, he specifically represented that he did not recommend or refer private securities transactions from May 2015 to May 2016 that Merrill Lynch did not offer or approve, according to the AWC.
Tanha Participates In Outside Business Activities Involving Entity B
FINRA stated that Michael Tanha co-founded Entity B in 2016 to develop a fitness center. Supposedly, Tanha held an ownership stake in Entity B, and participated in marketing and capital raising obligations. Yet, he did not tell Merrill Lynch about the company. Also, the AWC reported that in 2015, Tanha engaged in outside business activities relating to insurance sales and real estate sales., Tanha received compensation for his outside business activities.
Michael Tanha Sells Entity B Investments Away From Merrill Lynch
Supposedly, Michael Tanha helped raise capital for Entity B. FINRA says Tanha structured investment agreements and voted to approve investor ownership interests. Supposedly, in 2017, Tanha persuaded five investors to purchase $150,000 in Entity B securities. However, Tanha did so without telling Merrill Lynch or asking for permission.
FINRA says Tanha lied to Merrill Lynch about outside business activities and private securities when he submitted compliance questionnaires. For engaging in outside business activities and private securities transactions, FINRA stated that Tanha violated FINRA Rules 3270, 3280 and 2010.
If you experienced losses by investing with Merrill Lynch securities broker Michael Tanha, please contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.