NOTICE TO MERRILL LYNCH CUSTOMERS – Klayman & Tokses, P.A. Announces Investigation into Merrill Lynch Loan Management Accou...
December 01 2016 - 2:43PM
Business Wire
The Securities Arbitration Law Firm
of Klayman & Toskes, P.A.
(“K&T”), www.nasd-law.com, announces an investigation into
Merrill Lynch, a wholly owned brokerage firm of Bank of America
(NYSE:BAC), for Financial Industry Regulatory Authority
(FINRA) sales practice violations from its Loan Management
Accounts (LMAs) following FINRA regulatory fines. Yesterday, FINRA
accepted from Merrill Lynch an Acceptance Waiver and Consent for
$6.25 million in fines and approximately $780,000 in restitution to
Puerto Rico customers, for inadequately supervising the use of
Merrill Lynch loans for customer accounts. According to FINRA,
Merrill Lynch brokerage accounts received proceeds transferred from
LMAs and purchased millions of dollars in securities, the majority
being purchased on margin, within 14 days of the transfer. FINRA
concluded that these supervisory failures occurred from January
2010 to November 2014.
According to K&T founder, Lawrence L. Klayman,
Esq., “The use of brokerage account assets as collateral for these
loans greatly increased the risks assumed by Merrill Lynch
customers.” Mr. Klayman explains, “Our firm is
investigating sales practice violations by Merrill Lynch for
failure to supervise its financial advisors’ recommendations to
customers concerning the use of LMA proceeds to purchase stock on
margin. Merrill Lynch’s advice to use margin loans signals a
potential conflict of interest, which
increased commissions for their financial advisors at the expense
of customers who did not fully understand the risks associated with
these loans.”
The sole purpose of this release is in furtherance of our
investigation into Merrill Lynch’s sales practices related
to Loan Management Accounts (LMAs) which may include
violations for unsuitable recommendations, margin abuse,
breach of fiduciary duty, misrepresentations and omissions of
material facts and a failure to supervise. Current
and former Merrill Lynch customers who have information about
the sales practices of Bank of America and its brokerage firm,
Merrill Lynch are encouraged to contact Lawrence
L. Klayman, Esq. or Raymond Gentile, Esq.
of Klayman & Toskes, P.A. at (888)
997-9956, or visit our website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which
practices exclusively in the field of securities arbitration and
litigation, on behalf of retail and institutional investors
throughout the world in large and complex securities matters. The
firm represents high net-worth, ultra-high-net-worth, and
institutional investors, such as non-profit organizations, unions,
public and multi-employer pension funds. K&T has office
locations in California, Florida, New York and Puerto Rico.
Destination: http://nasd-law.com/notice-to-merrill-lynch-customers-klayman-tokses-p-a-announces-investigation-into-merrill-lynch-loan-management-accounts-in-light-of-finra-sanctions-for-7-million-in-fines-and-restitut/
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version on businesswire.com: http://www.businesswire.com/news/home/20161201006292/en/
Klayman & Toskes, P.A.Lawrence L. Klayman,
Esq. or Raymond Gentile, Esq., 888-997-9956info@nasd-law.com
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