Paul Michael Tavelman – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Paul Michael Tavelman.
BrokerComplaints.com is currently investigating allegations related to Paul Michael Tavelman. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Paul Tavelman
Paul Michael Tavelman is an Investment Adviser. Paul Michael Tavelman’s Central Registration Depository (CRD) number is 442971 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/442971.
Click here to download a Detailed Audit Report for Paul Michael Tavelman.
Paul Michael Tavelman has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Paul Michael Tavelman’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/14/2010
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2008015108101
- DocketNumberAAO: 2008015108101
- Initiated By: FINRA
- Allegations: NASD RULES 2110, 2310, 2510, INTERPRETATIVE MATERIAL 2310-2: TAVELMAN RECOMMENDED AN UNSUITABLE CONCENTRATION OF HIGH-RISK INVESTMENTS FOR AN ESTATE ACCOUNT. SPECIFICALLY, TAVELMAN RECOMMENDED THE PURCHASE OF THREE CLOSED-END INCOME FUNDS WITH PORTFOLIOS THAT WERE COMPRISED OF SPECULATIVE OR NON-INVESTMENT GRADE DEBT SECURITIES. WITH THE EXCEPTION OF A PREFERRED STOCK, THESE WERE THE ONLY SECURITIES THAT TAVELMAN PURCHASED FOR THE ESTATE ACCOUNT. AS A RESULT OF TAVELMAN’S INVESTMENT CHOICES, APPROXIMATELY 50% TO 95% OF THE ESTATE ACCOUNT’S INVESTMENTS DURING THE RELEVANT PERIOD INCLUDED ONE OR MORE OF THE HIGH-RISK INCOME FUNDS. TAVELMAN RECOMMENDED THOSE TRANSACTIONS WITHOUT HAVING REASONABLE GROUNDS FOR BELIEVING THAT SUCH TRANSACTIONS WERE SUITABLE FOR THE CUSTOMER IN VIEW OF THE NATURE OF THE ACCOUNT AND THE CUSTOMER’S FINANCIAL SITUATION, INVESTMENT OBJECTIVES AND NEEDS. SPECIFICALLY, THE RECOMMENDATIONS WERE UNSUITABLE IN THAT THE EXECUTOR OF THE ESTATE ACCOUNT WAS SEEKING CONSERVATIVE, GROWTH INVESTMENTS FOR THE ACCOUNT WITHOUT RISK TO PRINCIPAL. THE ESTATE ACCOUNT SUFFERED LOSSES AS A RESULT OF TAVELMAN’S UNSUITABLE RECOMMENDATIONS. IN ADDITION, TAVELMAN EXERCISED DISCRETION IN THE ESTATE ACCOUNT WITHOUT OBTAINING PRIOR WRITTEN AUTHORIZATION FROM THE EXECUTOR AND WRITTEN ACCEPTANCE OF THE ACCOUNT AS DISCRETIONARY BY HIS MEMBER FIRM.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Restitution
- Sanction Details :: Amount: $7,000.00 Sanctions: Suspension
- Sanction Details :: Registration Capacities Affected: ALL CAPACITIES
- Duration: 30 DAYS
- Start Date: 10/18/2010
- End Date: 11/16/2010
- Regulator Statement: WITHOUT ADMITTING OR DENYING THE FINDINGS, TAVELMAN CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS REQUIRED TO PAY RESTITUTION IN THE AMOUNT OF $7,000 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR THIRTY DAYS. TAVELMAN SHALL SUBMIT SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION AFTER EACH PAYMENT DUE UNDER THE INSTALLMENT PLAN, NO LATER THAN 15 DAYS AFTER EACH PAYMENT IS DUE. IF FOR ANY REASON TAVELMAN CANNOT LOCATE ANY CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN 15 DAYS FROM THE DATE EACH PAYMENT IS DUE UNDER THE INSTALLMENT PLAN, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA STAFF IN WRITING, TAVELMAN SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LAST KNOWN TO HAVE RESIDED. TAVELMAN SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA STAFF, WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE SUSPENSION IS IN EFFECT OCTOBER 18, 2010, THROUGH NOVEMBER 16, 2010.
- Broker Comment: WITHOUT ADMITTING OR DENYING THE FINDINGS, TAVELMAN CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE HE IS REQUIRED TO PAY RESTITUTION IN THE AMOUNT OF $7,000.00 AND SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR THIRTY DAYS. TAVELMAN SHALL SUBMIT SATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION AFTER EACH PAYMENT DUE UNDER THE INSTALLMENT PLAN, NO LATER THAN 15 DAYS AFTER EACH PAYMENT IS DUE. IF FOR ANY REASON TAVELMAN CANNOT LOCATE ANY CUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN 15 DAYS FROM THE DATE EACH PAYMENT IS DUE UNDER THE INSTALLMENT PLAN, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA STAFF IN WRITING,TAVELMAN SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE ESCHEAT,UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LAST KNOWN TO HAVE RESIDED. TAVELMAN SHALL PROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA STAFF, WITHIN 14 DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATE STATE AUTHORITY. THE SUSPENSION IS IN EFFECT OCTOEBR 18,2010 THROUGH NOVEMBER 16, 2010.
DISCLOSURE 2 –
- Event Date: 12/26/1999
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Withdrawn
- Disclosure Detail :: Allegations: CUSTOMER ALLEDGED SPECULATION AND CHURNING IN ACCOUNT DURING PERIOD 1994 THRU 1996.
- Arbitration Docket Number:
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- BAIRD, PATRICK & CO., INC. (CRD#: 1149) :: 7/23/1990 – 9/1/2017 :: JERSEY CITY, NJ
- JESUP, JOSEPHTHAL & CO., INC. (CRD#: 3144) :: 5/29/1990 – 7/26/1990
- JOSEPHTHAL & CO., INCORPORATED (CRD#: 475) :: 6/5/1981 – 5/29/1990
- FIRST WALL STREET SETTLEMENT CORPORATION (CRD#: 7321) :: 1/4/1977 – 7/1/1977
- LOEB, RHOADES & CO. INC. (CRD#: 525) :: 10/6/1975 – 1/4/1977
- EDWARDS & HANLY (CRD#: 6554) :: 7/24/1975 – 11/10/1975
- HERZFELD & STERN (CRD#: 406) :: 4/4/1975 – 8/10/1975
- BRUNS, NORDEMAN, REA & CO. (CRD#: 6589) :: 8/13/1974 – 3/28/1975
- E. F. HUTTON & COMPANY INC (CRD#: 235) :: 5/9/1974 – 9/14/1974
- ADVEST, INC. (CRD#: 10) :: 11/27/1972 – 5/5/1974
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Paul Michael Tavelman, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Paul Tavelman
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Paul Michael Tavelman – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (442971) for the broker – Paul Michael Tavelman
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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