Merrill Lynch Pays $40 Million to Settle Broker Churning

Posted on January 7th, 2020 at 1:23 PM
Merrill Lynch Pays $40 Million to Settle Broker Churning

From the Desk of Jim Eccleston at Eccleston Law LLC:

Churning allegations involving a former Bank of America’s Merrill Lynch (“Merrill Lynch”) broker have cost the wirehouse $40 million, and it still faces another costly complaint from another customer related to the same broker.

According to a recent InvestmentNews article, Merrill Lynch settled one case that had been pending in arbitration with the Financial Industry Regulatory Authority (“FINRA”). The wirehouse fired the broker involved, who had worked for Merrill since 2007.

Specifically, Robert Levine, a co-founder of the former Cabletron System, which made computer-networking equipment, alleged “unsuitable investment recommendations, excessive trading, and misrepresentation from February 2012 until December 2017.”

According to FINRA’s BrokerCheck, another claim is still pending for more than $42 million in alleged damages. It comes from Craig Benson, Levine’s co-founder at Cabletron, and a former governor of New Hampshire.

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, merrill lynch, broker chruning, wirehouse, finra

Return to Archive



If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.


February 23, 2024
Advisor Accepts Industry Bar Amid FINRA Probe into Outside Business Activities

John A. Dougherty, a veteran advisor with 23 years of experience, agreed to an AWC (Acceptance, Waiver, and Consent) after refusing to cooperate with a regulatory investigation into allegations of undisclosed outside business activities.

February 22, 2024
Key Considerations for Advisors When Assessing the Financial Soundness of Annuities

While rating agencies like Fitch and S&P Global Ratings generally highlight the strength of annuity issuers, advisors still should scrutinize certain factors in their assessment process.

February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.