Ex-Merrill Exec Avoids Fines on Customer Cash Misuse
The SEC has issued no penalties against a former Merrill Lynch executive the regulator had said was responsible for the wirehouse’s misuse of client funds, Bloomberg reports.
Merrill Lynch had settled with the SEC last June, paying a $415 million fine and admitting wrongdoing for misusing client cash for complex options trading on behalf of the firm from 2009 to 2012. The same month, the regulator had filed a lawsuit against William Tirrell, the former head of regulatory reportingat Merrill Lynch, according to Bloomberg.
The SEC found Tirrell had negligently caused violations of securities rules at the wirehouse, according to the SEC’s order Friday, cited by the news services. But the regulator only ordered Tirrell to cease and desist from future transgressions. The SEC chose not to apply a fine or suspension, according to Bloomberg.
Tirrell’s attorney tells the news service in a statement that the terms of the settlement “speaks [sic] for itself,” pointing out the SEC has acknowledged there was no intentional misconduct and no customers were hurt as a result of the trades.
A spokeswoman for the SEC declined comment to Bloomberg.