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Furgison Law Group is considering potential claims against Merrill Lynch related to alleged misconduct.
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News and Investor Alerts on investment scams, financial adviser fraud and other stockbroker misconduct
Investor Alert: Julie Ann Mineard was barred for converting and improperly using approximately $24,044
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Furgison Law Group is considering potential claims against Merrill Lynch and Julie Ann Mineard related to alleged misconduct.
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The securities fraud lawyers at Furgison Law Group are currently investigating claims against Merrill Lynch related to possible misconduct by Kajo Movsesian.
Read MoreFINRA Fines Merrill Lynch a Total of $6 Million for Reg SHO Violations and Supervisory Failures
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WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has censured and fined Merrill Lynch Professional Clearing Corp. (Merrill Lynch PRO) $3.5 million for violating Regulation SHO, an SEC rule that established a regulatory framework to govern short sales and prevent abusive naked short selling. FINRA also censured and fined its affiliated broker-dealer, Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch), $2.5 million for failing to establish, maintain and enforce supervisory systems and procedures related to Regulation SHO and other areas.
In addition to curtailing naked short selling, among other things, Regulation SHO also aims to reduce the number of instances in which sellers fail to timely deliver securities. Regulation SHO requires a firm to timely "close out" any fail-to-deliver positions by borrowing or purchasing securities of like kind and quantity. Additionally, Reg SHO permits firms to reasonably allocate fail-to-deliver positions to its broker-dealer clients that caused or contributed to the firm's fail-to-deliver position.
FINRA found that from September 2008 through July 2012, Merrill Lynch PRO did not take any action to close out certain fail-to-deliver positions, and did not have systems and procedures in place to address the close-out requirements of Regulation SHO for the majority of that period. FINRA also found that from September 2008 through March 2011, Merrill Lynch's supervisory systems and procedures were inadequate and improperly permitted the firm to allocate fail-to-deliver positions to the firm's broker-dealer clients based solely on each client's short position without regard to which clients caused or contributed to Merrill Lynch's fail-to-deliver position.
FINRA's investigation was conducted by the Departments of Enforcement and Market Regulation.
If you lost money after investing with Merrill Lynch, or any other related financial adviser, you may be able to recover your losses through securities arbitration. Our securities fraud law firm is here to help our clients recover their losses. Our investment fraud lawyers have recovered millions of dollars from the largest banks, insurance companies and brokerage firms in the world on behalf of investment fraud victims. You may have certain legal rights that require your immediate attention. Contact us TODAY for a FREE Consultation and case evaluation.