Merrill Lynch to Pay $26 Million to New Hampshire Regulator to Settle Charges of Excessive Trading

Posted on December 8th, 2020 at 3:06 PM
Merrill Lynch to Pay $26 Million to New Hampshire Regulator to  Settle Charges of Excessive Trading

From the Desk of Jim Eccleston at Eccleston Law LLC:

Merrill Lynch has agreed to pay a $2 million fine and $24.3 million in reimbursement to clients to settle an action brought by the New Hampshire Bureau of Securities Regulation. The enforcement action stemmed from excessive trades made by Charles Kenahan, a former Merrill Lynch broker. Kenahan was terminated from Merrill Lynch in July 2019 for allegedly making excessive trades, as well as making unauthorized trades and unsuitable investment recommendations. 

According to the New Hampshire Bureau of Securities Regulation, Merrill Lynch failed to supervise Kenahan when he “traded without authorization, mismarked trade confirmations, excessively traded stocks and initial public offerings, over charged commissions, and inappropriately traded inverse and leveraged products.” Kenahan recommended the purchase of stock in United Kingdom-based Monitise to several investors, despite the fact that Monitise was a security that was not followed by Merrill Lynch research, the New Hampshire regulators alleged. Additionally, New Hampshire regulators alleged that “[t]he misconduct led to high commissions for Merrill Lynch and Kenahan and heavy losses for the investor.”

According to the New Hampshire regulators, the settlement was the largest monetary sanction in the regulator’s history.

Tags: eccleston, eccleston law, merrill lynch, payout, charges, excessive trading

Return to Archive

TESTIMONIALS

Previous
Next

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

Rick R.

LATEST NEWS AND ARTICLES

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.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).

February 19, 2024
FINRA Flags Violations in 70% of Broker-Dealers' Crypto Communications

During a two-year-old targeted examination, the Financial Industry Regulatory Authority (FINRA) has identified potential violations in 70 percent of broker-dealers' communications about cryptocurrencies.