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

I just received this letter from the CFP Board. Thank you, Thank you, THANK YOU!

David Y

LATEST NEWS AND ARTICLES

November 26, 2025
Former GWG Chair Charged in Alleged $150 Million Fraud Scheme as Investor Losses Mount

Federal prosecutors have intensified scrutiny of the long-running collapse of GWG Holdings Inc., unveiling criminal charges against Bradley Heppner, the former chair of both GWG and Beneficient.

November 25, 2025
Financial Advisor Accepts FINRA Bar Amidst Investigation into Alleged Misappropriation

A financial advisor affiliated with a credit union connected to Raymond James Financial agreed to an industry bar after declining to cooperate with FINRA’s investigation into allegations that he misappropriated client funds.

November 24, 2025
Kyle Busch Alleges Considerable Losses in Indexed Universal Life (IUL) Scheme

Kyle Busch, a two-time NASCAR Cup Series champion, and his wife Samantha announced that they lost more than $8.6 million in what they describe as a “devastating financial scheme” involving an Indexed Universal Life (IUL) insurance policy.