Merrill Lynch To Pay $16M To Settle RMBS Scam Claims

By Dunstan Prial (June 12, 2018, 5:14 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday said brokerage firm Merrill Lynch Pierce Fenner & Smith Inc. will pay nearly $16 million to settle allegations its employees knowingly overcharged customers who purchased residential mortgage-backed securities.

In a 15-page administrative proceeding order, the SEC said Merrill Lynch traders and salespeople convinced the firm's customers to overpay for RMBS by lying about the price the firm paid for the securities, claiming Merrill Lynch paid more than it actually did.

"In opaque RMBS markets, lying to customers about the acquisition price can deprive investors of important information," Daniel Michael, chief of the SEC...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!