Merrill Lynch Settles SEC Fraud Charges For $10M

Law360, New York (January 25, 2011, 3:51 PM EST) -- Merrill Lynch Pierce Fenner & Smith Inc. said Tuesday it will pay $10 million to settle U.S. Securities and Exchange Commission charges that the firm fraudulently used customer orders to place trades on its own behalf and charged customers undisclosed fees.

The SEC charged Merrill Lynch on Tuesday with securities fraud for making proprietary trades based on confidential orders from institutional customers and overcharging customers on certain trades. Without admitting or denying the findings, Merrill agreed to pay the $10 million penalty and consented to a...
To view the full article, register now.