| To: BWAC who wrote (13531) | 3/8/2005 12:30:47 PM |
| From: Proud_Infidel | of 24134 |
| |
OT More work from the nice guys</sarcasm>
Merrill Lynch Fined $13.5M for Violations
Tuesday March 8, 11:33 am ET
New York Stock Exchange Fines Merrill Lynch $13.5 Million for Mutual Fund Violations
NEW YORK (AP) -- Merrill Lynch & Co. was fined $13.5 million by the New York Stock Exchange after a group of the company's brokers engaged in improper timing of mutual funds, the NYSE announced Tuesday.
In a hearing decision made Monday, the NYSE determined that a group of brokers in Fort Lee, N.J., made more than 3,700 short-term mutual fund transactions from January through April 2002. The brokers used multiple accounts, all of which were held for a single hedge fund client, the NYSE said, and the accounts were transferred outside the firm and back in later that year.
The transfers and other violations occurred until October 2003.
While Merrill Lynch told the brokers to stop the mutual fund trades in November 2002, but the brokers did not, and Merrill Lynch failed to follow up, the exchange said.
"When a firm discovers that brokers have engaged in misconduct, the exchange expects and demands that the firm will heighten supervision and take all necessary action to ensure that the conduct has ceased," said Susan Merrill, chief of regulatory enforcement at the NYSE.
According to the NYSE, $10 million of the fine will be paid to the state of New Jersey in a related settlement, and another $3.5 million to the state of Connecticut as part of settlement talks there.
In addition to the fine, the NYSE censured Merrill Lynch and required the brokerage review its procedures regarding the creation and retention of documents with regard to outside accounts.
A spokesman for Merrill Lynch was not immediately available for comment.
Shares of Merrill Lynch fell 22 cents to $60.97 in late morning trading on the New York Stock Exchange. |
