Michael Rene Lavelanet, of Garden City, New York, was charged by the Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that Lavelanet willfully failed to disclose an estimated $382,490.00 in state warrants and federal tax liens via Form U4 updates, as well as falsely attesting the annual compliance questionnaire administered by Woodstock regarding such matters. Department of Enforcement v. Lavelanet, No. 2014042547601 (Jan. 11, 2016).
The Complaint indicated that from June 2011 through March 2014, Lavelanet was subject to at least two state tax warrants along with three federal tax liens, but willfully had not updated his Application for Securities Industry Registration or Transfer Form, referred to as Form U4. FINRA found that Lavelanet’s conduct in this regard was violative of FINRA By-laws Article V, Section 2 as well as FINRA Rules 2010 and 1122.
The Complaint indicated that the aforementioned liens were not satisfied, and that Lavelanet received notice of such liens. Lavelanet was reportedly responsible for keeping his U4 form accurate, and informing his firm of financial liens among other disclosures in a prompt fashion.
The Complaint additionally stated that when Lavelanet was associated with the firm in 2012, he responded “no” in a firm compliance questionnaire which asked Lavelanet if there had been any event or occurrence, such as judgments, bankruptcies, fines, and sections, that required his filing. FINRA found that as a result of Lavelanet’s conduct of failing to observe just and equitable principles of trade and observe FINRA’s standards of commercial honor, he had violated Rule 2010.
Public disclosure records reveal that Lavelanet has been subject to ten disclosure incidents. On August 23, 2006, he settled a customer dispute for $4,990.00 after the customer had alleged investment losses and Lavelanet had not contacted the client. Lavelanet was subject to a customer dispute on March 26, 2009, in which he was alleged to have engaged in unsuitable short sale recommendations. From June 27, 2011 through June 18, 2013, Lavelanet became subject to the aforementioned federal and state tax judgments.
On December 8, 2014, Lavelanet settled a customer dispute for $125,000.00 after the customer alleged excessive trading, fraud, unsuitable investments, omission of material facts, as well as breach of contract, conversion, and breach of fiduciary duty. On February 3, 2015, Lavelanet settled a customer dispute for $35,000.00 after the customer alleged unauthorized trades, unsuitable trades, breach of fiduciary duty, and churning.
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