NYSE Fines Merrill For Lax Supervision Of Trader

Law360, New York (April 9, 2008, 12:00 AM EDT) -- Merrill Lynch & Co. Inc. has paid a $300,000 fine for failing to prevent a former trader from routinely altering customer accounts after executing trades to benefit a favored hedge fund client, the New York Stock Exchange announced Wednesday.

For seven months beginning in January 2003, John Vedovino, the top sales trader on the firm’s equities trading desk at the 4 World Financial Center office, made over 1,000 post-execution changes to accounts in defiance of firm policy, the NYSE report said.

Vedovino regularly rewrote account trades,...
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