Tr?id=566623520170033&ev=PageView&noscript=1

SEC Bars Merrill Manager For Defrauding Client

Posted on October 12th, 2022 at 3:46 PM
SEC Bars Merrill Manager For Defrauding Client

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has barred an Annapolis, Maryland-based Merrill Lynch managed for defrauding a client from 2016 to 2020.

Richard Crabtree, a senior vice president and resident director of Merrill’s Annapolis branch, had been on medical leave for the past two years. However, over the prior four-year period, Crabtree deceived a client “into believing that he had invested $250,000 of the client’s funds into a private investment partnership that was held outside” of Merrill Lynch, according to the SEC. Crabtree, who neither admitted nor denied any of the SEC’s findings, no longer works for Merrill.

According to the SEC, Crabtree did not profit from the deception that resulted in the bar and he was ordered to pay a $40,000 penalty. But Crabtree “falsely represented to the client that the trading strategy was highly profitable and that the client’s interest in the private investment partnership grew to as high as approximately $10 million”, according to the SEC. In an effort to conceal the fraud, Crabtree allegedly falsified portfolio review reports, trading records, and mortgage payout letters, according to the SEC.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

1778685786 Law
May 13, 2026
FINRA Fines J.P. Morgan Securities $3.25 Million Over Supervisory Failures in High-Risk Strategy

The Financial Industry Regulatory Authority (FINRA) has sanctioned J.P.

1778601835 Law
May 12, 2026
UBS Shifts SMA Oversight In-House, Discloses Potential Conflicts

UBS Wealth Management USA has begun restructuring how it manages separately managed accounts ("SMAs"), moving key oversight functions in-house and aligning its model more closely with competitors, according to reporting by AdvisorHub.

1778521728 Law
May 11, 2026
Private Credit Funds Face Rising Redemptions and Valuation Scrutiny

Investor pressure on private credit funds continues to intensify as redemption requests increase and concerns emerge over how firms value underlying loan portfolios.