Finra suspends former Merrill Lynch broker for impersonating client

Luke A. Eddy was suspended for three months and fined $5,000

Sep 12, 2018 @ 1:47 pm

By Sarah Min

The Financial Industry Regulatory Authority Inc. has suspended a former Merrill Lynch broker for impersonating a client.

Luke A. Eddy joined Merrill Lynch in Worcester, Mass., in 2014. According to Finra, he was terminated in June 2017 for impersonating an elderly client in a phone call with internal personnel and forging her signature on documents.

Mr. Eddy was attempting to help the daughter of a client with dementia transfer funds from the mother's individual retirement account to her bank account, for medical expenses, in April 2017. Merrill Lynch rejected the transfer because it was requested by the client's daughter. While the daughter had submitted a power of attorney to Mr. Eddy when she first opened the account for her mother, Merrill Lynch never received a copy and did not have it on file.

To process the transfer, Mr. Eddy posed as the client in a recorded phone call with Merrill Lynch, which suspected the impersonation and did not fulfill the request. One week later, Mr. Eddy forged his client's signature on a distribution form and the firm submitted about $3,400 to the client's bank account.

For violating Finra rules by impersonating a customer, Mr. Eddy has received a three-month suspension and a $5,000 fine.

(More: Ex-Wells Fargo broker suspended for coaching client to lie about excessive commissions)


What do you think?

View comments

Recommended for you

Featured video


Envestnet Tamarac's Anderson: What's next for fintech?

Envestnet Tamarac is focused on broadening its offerings so it can gather more marketshare and craft more partnerships. Check out what Andina Anderson is examining so the company can do more for advisers.

Latest news & opinion

6 mistakes advisers make when onboarding new clients

Starting a new relationship with a client is harder than it looks.

TCA by E*Trade lures Edelman Financial Engines with promise of client referrals

Access to clients through E*Trade's 30 branch offices drew the attention of RIA Edelman Financial Engines.

10 states with lowest overall tax burden

Here's a list of the states with the lowest total tax burden from Wallet Hub.

7 surprising things Medicare doesn't cover

Gaps in Medicare's coverage can wreak havoc with a retiree’s budget, but here are some solutions to help your clients fill the gaps.

Step one: Withdraw from the broker protocol

Pulling out of the protocol proved to be one part of multipronged strategies by Morgan Stanley and UBS to reduce broker attrition. So far, their plans seem to be working.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print