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A former New Jersey investment advisor’s registration was revoked after authorities say he sold nearly $900,000 in unregistered securities of a startup tequila production company whose founder was convicted of criminal fraud charges.

In a July 31 press release announcing the order against Michael Mandel of Suffern, N.Y., the New Jersey Attorney General’s Office said he allegedly sold securities in the form of ownership interests in Hudson Valley-based 6 Degree Tequila LLC via unauthorized private transactions made while he worked as an agent and investment advisor of two broker-dealers in New Jersey, Royal Alliance and LPL Financial.

According to authorities, Mandel allegedly invited prospective investors, including friends and advisory clients, to 6 Degree promotional events, such as golf outings and cocktail parties, as part of an effort to solicit them to invest in the company, noting that he “targeted” clients whom he believed could afford to put money into the venture.

Of the $887,000 in unregistered securities Mandel sold between August 2014 and October 2016, $439,000 of those transactions involved 10 investors from New Jersey, the AG’s office said.

By failing to disclose this activity to his employing brokerage firms and obtain their required approval to sell the tequila company’s unregistered securities, Mandel short-circuited the policies and procedures designed to protect investors from unsuitable, fraudulent investments, according to authorities.

His actions were also in violation of New Jersey Uniform Securities Law, the state said.

In addition to having his prior agent and investment advisor registrations revoked, Mandel’s current application to register in New Jersey was denied and he was issued a $150,000 civil penalty, according to authorities.

The order comes more than a year after the Financial Regulatory Authority (FINRA) sanctioned Mandel for selling away violations. As part of the action, he was given a seven-month suspension, $5,000 fine and disgorgement of $5,635.

“Investors have a right to expect that financial professionals are complying with the law and with industry standards,” said Cari Fais, acting director of the Division of Consumer Affairs, said in a statement. “The message we are sending today makes it clear that New Jersey enforces the laws that ensure transparency in our securities industry and protect consumers from fraud.”

Attorney General Matthew Platkin commented, “We will not allow financial professionals to enrich themselves by circumventing the laws that provide critical protections for investors and ensure the integrity of our financial markets.”

“By taking action today, our Bureau of Securities has removed this rogue professional from practice and held him accountable for unlawful conduct that exposed investors to unnecessary risks,” Platkin said.

Mandel could not immediately be reached for comment by NJBIZ.

In 2021, 6 Degree’s founder Joseph Cimino pled guilty to securities and wire fraud in connection with the sale of securities.

As part of his plea, Cimino admitted to making false representations about 6 Degree’s financial performance and falsifying the number of investors to solicit, attract and maintain investments as well as using that money for personal expenses. In May 2022, he was sentenced to two concurrent prison terms of 18 months each, ordered to pay $615,000 in restitution and forfeit $159,258.

Prior to founding 6 Degree, Cimino’s background included serving as for over a decade as director of food and beverage operations at Crystal Springs Resort in Sussex County.

In an Albany Times Union report, a former colleague recalled that Cimino was close with the late Gene Mulvihill, who founded and owned the infamous Action Park water park in Vernon as well as Crystal Springs.

Mulvihill was banned from Wall Street for selling worthless securities and pled guilty in 1984 to fraud, theft and embezzlement charges when he created a fake insurance company to skirt insurance regulations.