Merrill Lynch Fined $1M Over Broker's Ponzi Scheme

Law360, New York (October 4, 2011, 11:49 AM EDT) -- U.S. financial regulators on Tuesday fined Bank of America Corp. unit Merrill Lynch $1 million for failing to stop a San Antonio-based securities broker from running an $11 million Ponzi scheme out of his firm account.

Bruce Hammonds, a registered representative with Merrill Lynch, swindled 11 people using an account he created with the firm's sanction, according to the Financial Industry Regulatory Authority. Hammonds' supervisors approved his request to open B&J Partnership and then neglected to supervise the money that customers deposited and Hammonds withdrew, regulators...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.