Former broker fined $10,000 and suspended six months over expense account

Now-RIA Joshua Crossman admitted he fibbed to use up Merrill Lynch expense allowance

May 3, 2018 @ 2:31 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has suspended former Merrill Lynch broker Joshua Crossman for six months and fined him $10,000 over an expense account report he filed while at the firm.

In a letter of acceptance, waiver and consent, Finra said that in January 2017, Mr. Crossman intentionally made "false statements to Merrill Lynch, in an expense report, in an attempt to obtain reimbursement of approximately $524 for expenses that he did not incur."

He was discharged by the firm in March 2017 and currently is employed as a wealth manager at Boston Private, a registered investment advisory firm, in Palm Beach Gardens, Fla.

According to the acceptance letter, Merrill Lynch notified Mr. Crossman on Dec. 30, 2016, that he had approximately $555 remaining in his expense account and that any unused funds would be forfeited. On Jan. 3, 2017, the deadline for submitting expenses for 2016, Mr. Crossman instructed his assistant to submit an expense report in the amount of approximately $524, seeking reimbursement for mileage and dinner expenses. Mr. Crossman said these expenses were in connection with two meetings and a dinner with prospective clients. Later, he admitted that the meetings and dinner did not take place and that he submitted the false expense report to avoid forfeiting the unused funds.

Merrill Lynch rejected Mr. Crossman's January 2017 expense report and never cut him a check.


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