Posts Tagged ‘stockbroker attorney’

Merrill Lynch Defrauded Stockbroker Employees out of Deferred Compensation – Over 10 Million Awarded

June 1st, 2012

$10.2 awarded to former ML brokers; More lawsuits to follow

Two former Merrill Lynch (ML) stockbrokers have been awarded a total of $10.2 million by a Financial Industry Regulatory Authority (FINRA) arbitration panel in their suit against the firm for deferred compensation fraud.

Rubbish Art - Bank of America Merrill Lynch London

In a written report, the panel found ML guilty of breach of contract, negligence, fraud, and “intentional misconduct” in its handling of deferred compensation settlements.

The FINRA panel awarded Tamara Smolchek $4.3 million in compensatory damages plus $3.5 million in punitive damages. Meri Ramazio was awarded $875,000 in compensation for her losses and an additional $1.5 million in damages.

ML is appealing the decision.

More lawsuits in the offing

Approximately 3,000 stockbrokers left ML after the company was acquired by Bank of America in November 2008.  Not a single broker received vesting rights—despite ML’s deferred-compensation policy, which states that employees who leave the company for “good reason” are eligible for rights to the money in their tax-deferred accounts.

Needless to say, many more former ML brokers are now seeking compensation through the court system.

If you are a broker who was denied deferred compensation by Bank of America/ Merrill Lynch, contact the securities fraud attorney Daniel Carlson at Carlson Law today for a free consultation 619-544-9300.

Carlson Law Firm Website http://www.securities-fraud-attorney-san-diego.com/

 

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Did Goldman Sachs Play an Unwholesome Role in the Recent Financial Crisis?

June 2nd, 2011
Goldman Sachs Headquarters, New York City

Image via Wikipedia

According to an article published by Reuters on June 2, 2011, Goldman Sachs has been subpoenaed by the Manhattan District Attorney’s Office for information regarding its role in events which precipitated the recent worldwide financial crisis. Earlier this year, the Wall Street Journal reported that the U.S. Department of Justice also plans to subpoena Goldman Sachs.

Both federal and New York prosecutors want more information about documents discovered through a U.S. Senate subcommittee probe regarding the part Wall Street played in the collapse of the housing market. According to the subcommittee report, as the market began to drop in late 2006 and 2007, Goldman Sachs offloaded much of its subprime mortgage risk to innocent clients. The firm also purportedly took its time fulfilling customer requests to close out their failing accounts.

Last year, the Securities and Exchange Commission (SEC) filed a civil fraud suit against Goldman Sachs for its failure to disclose information linking it to complex mortgage securities. While the firm settled the charges, it refused to respond to the charges.

Are these current subpoenas a serious problem for Goldman Sachs? Financial experts disagree. Dick Bove, a Rochdale Securities analyst, says authorities are simply looking for someone to punish and Goldman Sachs seems like a likely candidate. Still, according to reporter Brad Hintz, any legal action against Goldman Sachs—whether successful or not—is bound to hurt the firm. Hintz advises that the company “make amends.” Other analysts maintain that the investigations will prove fruitless and have little impact on the company.

Meanwhile, Goldman Sachs has issued a public statement that it will “cooperate fully” with the Manhattan DA.

If you experienced financial loss during the recent financial crisis due to stockbroker malpractice, contact a stockbroker attorney at Carlson Law today at 619-544-9300 for a free consultation.

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Posted in Broker Fraud, Fiduciary Duty Breach, Investment Fraud, Negligent Misrepresentation, Securities Arbitration, Securities Fraud, Securities Law, Securities Litigation | Comments (0)