Former Merrill Lynch Stockbroker Michael M. Tanha Suspended for Engaging in Outside Business Activities and Private Transactions
Michael Milad Tanha of Los Angeles, California submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly engaging in outside business activities and unapproved private transactions in violation of NASD Rule 3040 and FINRA Rules 3270, 3280 and 2010. From October 2014 to June 2017, Michael Milad Tanha was registered with Merrill Lynch as an Investment Company Products/Variable Contracts Representative and a General Securities Representative. According to the FINRA findings, Tanha engaged in five outside business activities and participated in private securities transactions totaling $500,000 without notice or approval from his firm. The FINRA findings stated that Tanha co-founded a corporation created to enable its clients to communicate with celebrities on social media for a fee and was responsible for marketing, capital raising, and working with lawyers and accountants to incorporate Entity A and pay its taxes. The findings stated that in connection to the transactions, Tanha received commissions, referral fees and introduction fees. In addition to those FINRA findings, Tanha allegedly falsely attested that he did not recommend or refer any sales, purchases, or private securities transactions on the compliance questionnaire submitted to Merrill Lynch without approval.
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