$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.
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/