Bank of America’s Merrill Lynch Unit to Pay a $15.7 Million Settlement for Failing to Properly Supervise Mortgage Bond Transactions

Posted on June 18th, 2018 at 4:28 PM
Bank of America’s Merrill Lynch Unit to Pay a $15.7 Million Settlement for Failing to Properly Supervise Mortgage Bond Transactions

From the Desk of Jim Eccleston at Eccleston Law LLC:

Bank of America Corp.’s Merrill Lynch unit has agreed to pay a total of $15.7 million to settle a lawsuit filed by the SEC over allegations that it failed to properly supervise traders who persuaded clients to overpay for mortgage bonds.

More specifically, traders at Merrill Lynch misrepresented how much the firm paid for the mortgage-backed securities, thereby profiting from the improper markups of the securities sold that were, in some cases, twice as much as what customers should have paid.

In its complaint, the SEC asserted it had found that Merrill Lynch failed in its obligation to supervise traders who allegedly used their access to market information to take advantage of the bank’s own customers.

Without admitting or denying the SEC’s allegations, Merrill Lynch agreed to pay a fine of about $5.2 million and to pay disgorgement and interest of more than $10.5 million.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, Bank of America, Merrill Lynch, settlement

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