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

Law360 (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...
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