Securities Lawyer Blog | Victim of Fraud?

TAG | Bank of America Merrill Lynch

Apr/13

17

FINRA Awards $11 Million to Investor

Comments off · Posted by Securities Lawyer in FINRA

A Financial Industry Regulatory Authority (FINRA) arbitration panel ordered a former employee of Merrill Lynch, Deutsche Bank, and Oppenheimer & Co. to pay nearly $11 million to an investor who alleged his broker, Karl Hahn, misrepresented securities and made excessive trades.

The investor’s case against the former broker Karl Hahn, stems from transactions involving covered calls, a variable annuity and other investments. The investor filed the case in 2011, also named Bank of America Corp.’s Merrill Lynch unit, Deutsche Bank Securities Inc., a unit of Deutsche Bank AG and Oppenheimer & Co.

Karl Hahn worked at the three firms consecutively for approximately seven years between 2004 and 2011, according to FINRA’s BrokerCheck. The case against Merrill was settled, while those against Deutsche Bank and Oppenheimer were dismissed. Hahn’s alleged conduct toward the investor took place while the broker worked at all three of the firms.

The FINRA arbitrators awarded the investor approximately $4.1 million in compensatory damages and $6.4 million in punitive damages, according to the ruling. This is the second decision against Hahn in two months. FINRA arbitrators, held Deutsche Bank and Hahn jointly responsible in February in a $934,000 ruling on behalf of a couple and their trusts, who he allegedly swindled in a multi million-dollar insurance deal.

According to FINRA’s BrokerCheck, Karl Hahn was previously registered with FINRA at the following brokerage firms:

OPPENHEIMER & CO. INC.
CRD# 249
PORTSMOUTH, NH
06/2009 – 03/2011

DEUTSCHE BANK SECURITIES INC.
CRD# 2525
BOSTON, MA
02/2008 – 06/2009

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD# 7691
PORTSMOUTH, NH
09/2004 – 02/2008

If you have experienced a financial loss due to your stockbroker or financial advisor’s recommendations, call Soreide Law Group for a free consultation with an attorney at: 888-760-6552.

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Nov/12

2

Did You Invest in Bryn Mawr CLO Ltd., or LCM VII Ltd?

Comments off · Posted by Securities Lawyer in FINRA

Soreide Law Group is currently investigating these collateralized loan obligations (CLOs): Bryn Mawr CLO II Ltd., and LCM VII Ltd(Lyon Capital Management). Bank of America was the underwriter and sold several CLO’s, including Bryn Mawr and LCM VII. Many of these CLOs resulted in huge losses for the investors.

The state of Massachusetts is currently investigating records and documents from Banc of America Securities LLC (now known as Merrill Lynch) allegedly related to these two CLOs, Bryn Mawr CLO II Ltd., and LCM VII Ltd—sold in 2007.

The Financial Industry Regulatory Authority (“FINRA”), on January 31, 2012, issued an award ordering Merrill Lynch (Banc of America Securities) to pay an LCM VII Ltd. investor $1.38 million, which was the total loss of his investment, plus costs and attorney’s fees.

Securities Attorney, Lars Soreide, of Soreide Law Group, PLLC, has represented clients nationwide before FINRA. If you have sustained investment losses due to your stock broker or financial advisor’s recommendations regarding CLOs, call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

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Jun/12

22

B of A Merrill Lynch Fined $2.8 million by FINRA for Overcharging Customers

Comments off · Posted by Securities Lawyer in FINRA

FINRA announced Thursday that Bank of America Merrill Lynch was fined $2.8 million  for supervisory lapses that led to its overcharging customers $32 million for the past eight years.

According to the Financial Industry Regulatory Authority Inc. (FINRA) and the Bank of America Corp., Merrill Lynch has repaid 95,000 customers who were charged unwarranted fees due to computer coding issues from April, 2003, through December, 2011.

“Investors must be able to trust that the fees charged by their securities firm are, in fact, correct,” said Brad Bennett, Finra’s enforcement chief. “When this is not the case, investor confidence is threatened.”

FINRA also said that Merrill Lynch failed to send 230,000 customers timely confirmations on 10.6 million trades from July, 2006, through November, 2010, and failed to identify its role in at least 7.5 million mutual fund transactions.

According to FINRA, Bank of America brought these issues to their attention after its January 2009 acquisition of Merrill Lynch & Co. Inc. They have reimbursed the clients affected and improved the systems according to a Merrill Lynch spokesman.

Securities Lawyer, Lars K. Soreide, of Soreide Law Group, PLLC, has represented many clients nationwide. If you have investment losses through Merrill Lynch, please call for a free consultation on how to potentially recover your losses. To speak with an attorney call 888-760-6552, or visit our website at: http://www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Dec/11

7

Merrill Lynch Pays $315M to Settle Claims Over Asset-Backed Securities

Comments off · Posted by Securities Lawyer in FINRA

In a December 6, 2011, article from Bloomberg News, we learn that Bank of America Corp. (BAC) reached a $315 million settlement with class action plaintiffs who sued its Merrill Lynch unit over claims tied to mortgage-backed securities, according to a filing in Manhattan federal court.

Merrill Lynch was sued starting in December, 2008, by asset- backed certificate holders for alleged “false and misleading” prospectus statements related to $85 billion in securities, according to a brief filed yesterday with the court.

The plaintiffs said inaccurate statements were made about qualifications of mortgage-loan borrowers, property appraisals, and debt-to-income ratios of applicants, and “the registration statement materially misrepresented the credit quality of the mortgage loans underlying the certificates.”

The $315 million will be distributed to certificate holders who submit valid claim forms, plaintiffs’ lawyers said in court papers.

The Bloomberg News article concludes that Merrill Lynch contended losses experienced by investors were the result of “the overall economic downturn, housing price declines and reduced liquidity,” according to settlement papers.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member have experienced losses with Bank of America Corp., or Merrill Lynch, through asset backed securities, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses. To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA the Financial Industry Regulatory Authority.

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Jul/11

13

FINRA Awards 80+ year-old Merrill Client $880K

Comments off · Posted by Securities Lawyer in FINRA

In a July 8, 2011, article by Dan Jamieson for InvestmentNews.com he writes that clients of a prominent Bank of America Merrill Lynch have won an $880,000 arbitration award against the firm. Phil Scott of the firm’s Bellevue, Wash., office, was this year ranked No. 30 on the Barron’s list of top advisers, with $1.8 billion under management. He ranks No. 1 on the list for the state of Washington.

The arbitration award, decided June 22, was recently made available by Finra.

The InvestmentNews.com article lists the clients as, Harriet Baker, her son John Baker and his wife Natalie Baker, all of New York state. It claims they were 100% invested in stocks through the financial crisis. That heavy allocation in stocks was not suitable for them. Harriett Baker was in her late 80s when she started doing business with Mr. Scott in 2005. Ms. Baker died the day the award was issued.

Jamieson goes on to say that Mr. Scott runs more than $1 billion of client money in a dividend growth strategy, called the Phil Scott Income Portfolio.

“Everyone has the same position — 100% equities. That’s what our clients had,” he said.

The Bakers “sold at or near bottom” of the market drop, despite Mr. Scott’s recommendation to remain invested in a portfolio that subsequently performed well. The award was about half of the $1.7 million in compensatory damages the Bakers demanded.

The InvestmentNews.com article goes on to say that aside from the arbitration award from last month, Mr. Scott has three other pending arbitrations, according to disclosures he made on his Finra BrokerCheck report. One case was filed in April of this year, and two others were filed last summer. The customers allege misrepresentations and unsuitable stock investments from 2007 through 2009, according to the report.

Securities Attorney, Lars Soreide, of Soreide Law, PLLC, has represented clients nationwide. If you or a family member feel you have become a victim of Bank of America Merrill Lynch, Phil Scott, or Phil Scott Income Portfolio, call a Securities Arbitration Lawyer for a free consultation on how to potentially recover your losses.  To speak with an attorney, call 888-760-6552, or visit www.securitieslawyer.com.

Soreide Law Group, PLLC., representing investors nationwide before FINRA  the Financial Industry Regulatory Authority.

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