The Financial Industry Regulatory Authority (“FINRA”) reports troubling information about Merrill Lynch securities broker Scott Madison (CRD#: 4323032, Beverly Hills, California). Namely, at least two of Madison’s clients contested his sales practices. These client disputes raise serious questions about whether Madison made unauthorized trades and provided poor investment advice. Here’s more:
Merrill Lynch Client Indicates That Scott Madison Churned Account
Evidently, a client of Merrill Lynch brought FINRA Arbitration #: 19-03299 on November 7, 2019. First of all, the client indicated that Scott Madison made unauthorized trades. It appears that Madison purchased or sold OTC equities without the client’s knowledge or permission. Secondly, the client alleged that the broker made unsuitable recommendations. Perhaps Madison failed to have a reasonable basis to believe that the OTC equities were suitable when taking into account the client’s risk tolerance or other criteria. Finally, Madison allegedly churned the client’s account from 2017 to 2019. It is possible that Madison traded mainly to generate commissions from the client. For this reason, the client demanded $600,000 in compensatory relief in this ongoing matter.
Credit Suisse Client Suggests That Madison Arranged Bad Auction Rate Securities Transaction
Previously, Scott Madison worked for Credit Suisse Securities. Apparently, one of his Credit Suisse clients brought FINRA Arbitration #: 11-02968. Namely, the client suggested that Madison recommended or sold a bad auction rate security (ARS) which poorly performed. It is also possible that Madison misrepresented the asset backed debt security as safe, which caused the client to invest in the first place. Evidently, Credit Suisse Securities opted to pay the client $800,000 to resolve the dispute.
Losses Because Of Scott Madison’s Investment Recommendations?
Have you experienced losses from unsuitable recommendations or sales by Merrill Lynch securities broker Scott Madison? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of brokers and brokerage firms.