Ex-Merrill Adviser Sentenced to Prison for Running a Ponzi Scheme

Posted on February 28th, 2014 at 6:00 PM

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.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

June 9, 2023
Retrospective Review Deadline Approaching

The deadline for completing the initial retrospective review required by the Department of Labor (DOL) is quickly approaching.

June 8, 2023
Former David Lerner Branch Manager Receives FINRA Sanctions for Supervisory Lapses

The Financial Industry Regulatory Authority (FINRA) imposed a one-month suspension and a $5,000 fine on former David Lerner Associates branch manager Rande Aaronson.

June 7, 2023
SEC Files Fraud Charges Against Financial Advisor for Exploiting Elderly Clients

The Securities and Exchange Commission (SEC) has charged Douglas McKelvey, a former Morgan Stanley financial advisor, with fraud for misappropriating more than $1.7 million from two elderly customers who were his close relatives.