Ex-Merrill Adviser Sentenced to Prison for Running a Ponzi Scheme
From the Desk of Jim Eccleston at Eccleston Law Offices:
Gary H. Lane, 60, a former Bank of America Merrill Lynch financial adviser, was sentenced to 10 years in prison for running a Ponzi scheme that defrauded at least six elderly or inexperienced investors of $2.7 million.
From 2005 to 2011, he promised that the funds would be invested in U.S. Treasury bonds, which would pay better than 6% interest and would mature in two years. In fact, the bonds never existed, and the funds were placed in his wife's E*Trade account. The funds then were used to pay "interest" to other investors or withdraw to pay his personal expenses.
FINRA barred Lane in September 2011 from associating with any member firm. Merrill Lynch fired Mr. Lane in March 2011 upon learning of the outside activity. Lane had apologized and accepted responsibility for his actions, but he declined to comment further.
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