December 10, 2020 Comments Off on Merrill Lynch to pay $26M for Broker Churning Allegations  Blog, Current Investigations

Merrill Lynch to pay $26M for Broker Churning Allegations 

Merrill Lynch to pay $26M for Broker Churning Allegations, featured by top securities fraud attorneys, The White Law Group

Former Merrill Advisor Charles Kenahan Accused of Churning, Excessive Commissions and Unauthorized Trades

The New Hampshire Bureau of Securities Regulation reportedly reached a $26 million settlement with Merrill Lynch this week over allegations of failure to supervise former financial advisor Charles Kenahan (CRD#: 1351974) of Boston, MA.

The regulator reported ordered Merrill Lynch to pay a fine of $1.75 million and $250,000 over its alleged failure to supervise Kenahan, who purportedly churned stocks and initial public offerings, overcharged commissions, traded without authorization, inappropriately traded inverse and leveraged products and mismarked trade confirmations, according to the order. The regulator has also reportedly barred Kenahan from operating in the securities business in the state.

The largest part of the settlement, $24.25 million, reportedly goes to a high net worth Merrill Lynch client in New Hampshire, and is the largest monetary sanction in the state’s history, according to an article in Financial Advisor IQ.

Merrill had reportedly also settled for $40 million in 2019 with another investor over allegations that Kenahan made unsuitable recommendations from 2012 to 2017.

 According to his FINRA BrokerCheck report, Kenahan was registered with Merrill Lynch from 2007 until 2019 when he was reportedly discharged for customer allegations of unauthorized and excessive trading and unsuitable investment recommendations. 

Filing a Complaint against your Brokerage Firm

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

If you are concerned about investments with Charles Kenahan and Merrill Lynch, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.

The foregoing information, which is all publicly available, is being provided by The White Law Group.

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. For more information, please visit our website, www.whitesecuritieslaw.com.

 

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