Investigating Potential Claims involving Tom Buck and Merrill Lynch
According to a statement from federal prosecutors, Tom Buck, 63, faces up to 25 years in prison. He reportedly agreed to plead guilty on Tuesday to securities fraud. Buck was Merrill Lynch’s top producer in Indiana for many years and a top-ranked Barron’s broker.
Buck admitted to securities fraud for overcharging clients $2 million in excessive commissions and for failing to recommend lower-priced fee-based accounts, according to the U.S. attorney.
The White Law Group continues to investigate the liability that Merrill Lynch may have for failure to properly supervise Tom Buck.
According to his FINRA BrokerCheck report, Buck worked briefly at RBC Capital Markets after Merrill fired him in 2015. He has 38 disclosures listed on his Broker report, and 36 are customer disputes. Merrill has reportedly paid between $16,000 and $719,000 to settle 33 of those customer complaints.
FINRA permanently barred Buck from the securities industry in July 2015.
Buck agreed on Tuesday to pay $5 million to settle civil fraud charges from the Securities and Exchange Commission. He will disgorge about $2.9 million and pay a fine of $2.2 million.
Broker dealers have a fiduciary duty to monitor all the business transactions of their employees. When a broker violates securities regulations and the broker dealer is found to be liable for negligent supervision, the firm can be on the hook for investment losses.
Have you suffered losses as a result of investment funds recommended to you by former Merrill Lynch financial advisor Tom Buck? If so, 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.
For more information on The White Law Group, please visit our website at www.whitesecuritieslaw.com.