Massachusetts regulators fined Merrill Lynch $500,000 for failing to supervise a broker who defrauded clients. The broker, Jane O'Brien, allegedly borrowed about $2 million from her clients. According to state regulators, O'Brien was one of the top producers in her Boston Merrill Lynch office. State regulators alleged that O'Brien's status as a top producer contributed to Merrill Lynch's faulty supervision. Merrill Lynch did not review her conduct until almost a week after O'Brien was indicted by the U.S. Justice Department. Since then, O'Brien resigned, was barred from the securities industry, and pled guilty to the fraud charges which resulted in a sentence of thirty-three months in federal prison and ordered to pay restitution in the amount of $240,000.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.
To read more, please visit: http://www.investmentnews.com/article/20131031/FREE/131039973