Massachusetts security regulators fine Merrill Lynch $500,000 for “failure to supervise” a former broker who pled guilty to securities fraud.
According to Investment News, Merrill Lynch has been fined as a result of its “failure to supervise” former broker Jane O’Brien. Ms. O’Brien, who pled guilty to securities fraud back in 2012, was once a top producer at Merrill Lynch’s Boston office. Ms. O’Brien allegedly convinced a client to “invest” $240,000 in a privately held software company but she was actually using the money for personal expenses. Additionally, Ms. O’Brien apparently violated securities regulations and Merrill Lynch’s own policy by borrowing millions from clients. She was sentenced to 33 months in prison and ordered to pay back the $240,000 earlier this year.
Broker dealers have a fiduciary duty to monitor all the business transactions of their employees. When a broker, like Jane O’Brien, violates securities regulations the broker dealer is liable for negligent supervision and may be held responsible for investment losses. As such, Massachusetts securities regulators fined Merrill Lynch $500,000 for “failure to supervise.”
If you invested with Jane E. O’Brien or another unscrupulous broker and would like to speak to a securities attorney to determine if your brokerage firm may be liable for your investment losses, please call the securities attorneys of The White Law Group at 888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
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