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

We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele

LATEST NEWS AND ARTICLES

March 4, 2026
Modern Fraud Schemes Escalate in Scale and Sophistication

A recent panel discussion at the Financial Services Institute OneVoice conference in San Diego highlighted how rapidly evolving fraud schemes continue to victimize both retail and wealthy investors.

March 3, 2026
FINRA Suspends Former Stifel Broker Over Costly Account Switching Trades

The Financial Industry Regulatory Authority (FINRA) suspended a former Stifel, Nicolaus & Co.

March 2, 2026
FINRA Suspends Cetera Broker for Accepting $50,000 Client Bequest Without Firm Approval

The Financial Industry Regulatory Authority (FINRA) imposed a $10,000 fine and a seven-month suspension on an independent broker for accepting a $50,000 bequest from a client without obtaining prior firm approval.