Articles Tagged with Merrill Lynch

Stoltmann Law Offices is investigating allegations that Linan Abrego (aka Ma Rosa Linan Abrego) misappropriated client funds at Merrill Lynch. According to published reports,  Abrego was barred by FINRA for failing to appear or respond to an inquiry in connection with her termination from Merrill Lynch on June 10, 2019 for misappropriating client funds. The misconduct reported by FINRA alleges that Linan Abrego of McAllen, Texas, failed to appear as required by FINRA Rule 8210 and accepted a lifetime ban from the securities industry, instead of answering FINRA or providing information in furtherance of FINRA’s investigation. According to her publicly available FINRA BrokerCheck Report, Ms. Linan Abrego was registered with Merrill Lynch as a broker and financial advisor from December 6, 2016 to June 10, 2019 when she was terminated for cause by Merrill Lynch for “misappropriating client funds.” Pursuant to FINRA Rule 8210, if FINRA requests a broker sit for on the record testimony (called an OTR) and the broker either refuses or simply does not show up or refuses to provide answers to written questions, or refuses to produce documents requested by FINRA in the course of their investigation, this can be grounds for being permanently barred from the securities industry. It is the equivalent of a career death sentence. Once a broker is barred for life by FINRA, absent extraordinary circumstances, that person will need to seek a career change.

Typically, brokers who refuse to show up for a Rule 8210 request do so knowing they are sacrificing their securities licenses. Some brokers may be near retirement or are not interested in maintaining their licenses, so they rather not submit themselves to an OTR, which can be stressful and require retaining legal counsel. Other brokers fail to show up for an OTR because they fear the testimony they will give may be incriminating if they are truthful. The FINRA AWC agreed to and signed by Ms. Linan Abrego only states he failed to show up for the OTR and provides no further explanation for barring her from the securities industry. Linan Abrego did this willingly, and instead of providing testimony from FINRA about why she was fired by Merrill Lynch, she chose to accept a lifetime ban from the securities industry.

Routinely, financial advisors who steal money from their clients do it in such a manner which should have alerted the firm’s compliance or supervision departments. Many times this sort of theft is facilitated by the broker simply forging withdrawal forms or requests. Another common way brokers steal money is to set up a third party LLC or other entity to which the broker directs client money directly from their accounts through wire transfers.  Sometimes the clients allow these transfers because the broker tells them these transfers are an investment in a company, or it’s where her commissions are paid to. No matter the ruse, sophisticated brokerage firms like Merrill Lynch are required to have procedures in place to catch their brokers if they attempt to steal client money. Whether there were unauthorized withdrawals or transfers from your accounts, every FINRA brokerage firm, like Merrill Lynch must have robust Anti-Money Laundering rules and regulations in order to ensure a level of alertness in these circumstances. Failing to properly execute these procedures which results in a broker stealing client money results in liability for the firm for negligent supervision, putting Merrill Lynch on the hook for the losses.

AdobeStock_199789587-300x200The Financial Industry Regulatory Authority (FINRA) recently barred Marcus D. Parker, from the industry. Marcus Parker allegedly failed to respond to a FINRA investigation against him. FINRA was investigating him for misappropriating funds from client accounts, and other things. At the time, Parker was associated with Wells Fargo in Santa Fe, New Mexico. Wells Fargo may be liable for investment losses, because the firm had a duty to reasonably supervise Marcus Parker while he was registered there. Because it did not, we may be able to help you bring a claim against Wells Fargo for failing to supervise.
Marcus Duane Parker, according to online, FINRA records, was previously registered with Dean Witter Reynolds, Thomson McKinnon Securities, Prudential Securities, Painewebber, Salomon Smith Barney, Merrill Lynch in Santa Fe, New Mexico from September 2001 until September 2008, and Wells Fargo in Santa Fe from September 2008 until December 2017. He has one customer dispute against him alleging suitability, and one regulatory matter. He has been permanently barred from the industry. Please call our Chicago-based offices today for a free consultation with an attorney about your options. Attorneys are standing by to take your call. There is no obligation.

AdobeStock_112465076-1-300x164The Financial Industry Regulatory Authority (FINRA) barred former LPL broker Laura Shean from the industry for allegedly converting approximately $124,000 in customer funds between March 2017 and October 2017. Shean allegedly made tax payments for her own benefit to the IRS by improperly directing the IRS to debit funds from a customer’s brokerage account. The payments totaled $124,000. This resulted in a permanent bar from the industry by FINRA. Shean was previously registered with Merrill Lynch in New York, New York from March 1996 until March 1999, and LPL in Medford, Oregon from March 1999 until November 2017. She has one customer dispute against her, one regulatory pending matter, one investigation and one employment separation after allegations. She is not currently registered as a broker.

According to a recent InvestmenNews article, Merrill Lynch has reached an agreement with the Securities and Exchange Commission (SEC) related to its sale of shares of a Chinese software company that has been found to be operating a fraud scheme. The SEC claimed that Merrill failed to perform proper due diligence functions in the unregistered sales of shares of Longtop Financial Technology Ltd. Merrill Lynch will be required to pay a penalty of $1.25 million and more than $154,000 in disgorgement and prejudgment interest from commissions and fees earned on the improper sales. The bank also agreed to be censured and consented to the order requiring it to cease and desist from committing or causing any future violations of the registration provisions of the Securities Act. The distribution generated almost $38 million in proceeds for the overseas issuer and its affiliates. According to the case summary, from January 2011 until August 2011, Merrill violated the registration provisions of federal securities laws by effecting unregistered sales of nearly three million shares of Longtop Financial securities for a customer.

AdobeStock_17723177-1-300x175According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Pavel Shklyar was accused of violating industry rules and regulations. FINRA was investigating Shklyar for his participation in potential private securities transactions, and he did not provide requested documents to FINRA. This resulted in an automatic bar from the industry. Previously, Pavel Shklyar was registered with Josephthal & Co., Bernard L. Madoff, Credit Suisse, Salomon Smith Barney, ICAP/Investment Services and Trading, RBC Professional Trader Group, Merrill Lynch and J.P. Morgan in Norwood, New Jersey from January 2015 until February 2018. He is not currently registered as a broker and was barred from the industry, according to his online, public records with FINRA. If you or someone you know lost money with Mr. Shklyar and would like to bring a claim against J.P. Morgan for your losses, please call us today to find out how to do so on a contingency fee basis in the FINRA arbitration forum.

AdobeStock_112465076-1-300x164According to a recent Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA), Marcus Parker was permanently barred from the industry. Parker, a former broker with Wells Fargo, failed to respond to a FINRA investigation against him. This results in a permanent bar from the industry. According to his online, public FINRA BrokerCheck report, Parker was previously registered with Dean Witter Reynolds, Thomson McKinnon Securities, Prudential Securities, Painewebber Inc., Salomon Smith Barney, Merrill Lynch and Wells Fargo in Santa Fe, Mexico from September 2008 until December 2017. He has one customer dispute against him, alleging suitability. He has been permanently barred from the industry. You may be able to bring a claim against Wells Fargo in the FINRA arbitration forum on a contingency fee basis, which means we only make money if you recover yours. The firm had a duty to reasonably supervise Parker while he was employed there.

Scottsdale, Arizona-based Merrill Lynch broker Jonathan Rankin has customer complaints against him, according to his public records online with the Financial Industry Regulatory Authority (FINRA). Mr. Rankin, while registered with Merrill Lynch, allegedly misrepresented and omitted material facts regarding a variable annuity issued in May 2017. He also allegedly executed unauthorized trades, made misrepresentations of material facts, and omitted material facts related to investments from June 2015 until January 2016. These are against securities laws and internal firm rules. A brokerage firm like Merrill Lynch must reasonably oversee its brokers to make sure that they don’t violate securities laws. If it does not, it may be liable for losses on a contingency fee basis in the FINRA arbitration forum.
Jonathan Rankin is currently registered with Merrill Lynch in Scottsdale, Arizona, and has been since August 2007. He has two customer disputes against him, alleging unauthorized trading and misrepresentation and omission of material facts from June 2015 until January 2016, and misrepresentation and omission of material facts regarding a variable annuity issued in May 2017. This is a pending complaint.

AdobeStock_762441-1-300x225If you were recommended a long term care insurance policy by your financial advisor, and that policy has lapsed, you might be able to recover the premiums paid against the brokerage firm who recommended it. Many brokers recommended long-term care insurance policies with promises and representations that the premiums would not change or fluctuate much. In reality, many of the policies purchased had premiums that have skyrocketed in recent years. This means many of the people who were recommended these policies can no longer afford the payments on the premium. This means despite paying tens of thousands of dollars for years, these policies are now worthless. The brokerage firms who peddled these products had a duty and obligation to disclose all material risks, including the fact that the premiums would skyrocket in price. Some of the major policies pedaled by financial advisors at firms like Merrill Lynch, Morgan Stanley, and UBS were Geneworth, Penn Treaty and John Hancock Policies. Many of these policies have now lapsed. In other instances the insurance companies refused to pay out legitimate claims.

If you were recommended long term insurance policies by your financial advisor and these policies have a lapse please contact our Chicago-based securities fraud law firm at 312. 332. 4200 for a no-cost review by an attorney as to whether these losses can be recovered.

 

Former Merrill Lynch broker Lyle Boudreaux was accused of making an inappropriate investment, breaching contract, violating state securities laws, negligence and for a client of his suffering losses as a result of an exchange-traded fund position in an advisory account. These are all against securities laws and internal firm rules. A brokerage firm like Merrill Lynch has a duty to its customers to properly monitor and supervise all its employees. If it does not, it can be held liable for losses on a contingency fee basis in the Financial Industry Regulatory Authority (FINRA) arbitration forum. According to FINRA online records, Mr. Boudreaux was previously registered with Dean Witter Reynolds, PFS Investments, Sterne, Agee & Leach, Fixed Income Securities, Coastal Securities, Merrill Lynch and Sunbelt Securities. He is currently registered with Independent Financial Group in Houston, Texas, and has been since August 2012. He has three customer disputes against him, two of which are currently pending.

AdobeStock_90383187-1-300x194Last week, Merrill Lynch was fined a total of $26 million by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) alleging failures in reporting “suspicious” transactions, according to documentation obtained by Reuters. Allegedly, from 2010 until 2011, the bank failed to properly monitor brokerage accounts for illegal activity, and offered its brokerage clients traditional banking services, such as cash deposits at ATMs and wire transfers to offshore firms, without using screening software to highlight potentially illegal activity. The SEC fined Merrill Lynch $13 million and ordered the bank to cease and desist, alleging that, from 2011 until 2015, its anti-money laundering policies were insufficient to account for the additional risk from such banking services. FINRA is expected to announce and issue a $13 million fine in the next few days. A Miami court has ordered the bank to pay $25 million in a class action settlement related to failures to pass on sales charge waivers on mutual funds.

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information