NH Orders Merrill Lynch to Settle Churning Allegations for $26M
New Hampshire is ordering Merrill Lynch to pay $26.25 million in fines and restitution to the state and to an investor, the former Governor of New Hampshire, who claimed he suffered losses at the hands of a former Boston-based broker, to settle allegations including unauthorized and excessive trading.
It is the largest monetary sanction in the state’s history and the second-largest FINRA settlement in at least a decade.
Merrill Lynch, which is a subsidiary of Bank of America, was also cited for failure to supervise and ordered to maintain compliance undertakings specifically put in place to address the compliance failures uncovered by New Hampshire’s investigation.
Separately, the state securities regulator has permanently barred former Merrill Lynch broker, Charles Kenahan, from the securities business in New Hampshire.
