In reality, the firm managed less than $25 million, according to the SEC.
“It made the most sense for us to make this decision,” says Merit's president Kay Lynn Mayhue.
"There are many psychological factors that go into such a fraud,” attorney says.
“Obviously, this is beyond unusual,” says one veteran financial advisor.
"This is one of the largest emotional distress damages awarded in Finra’s history,” says attorney.
Latest splits from broker-dealers a sign that perhaps more executives and advisors from these giant branches want to enjoy the fruits of the private equity funds flooding the industry.
Firm agrees to pay six-figure penalty for its lack of compliance with anti-money laundering programs.
“You can’t put any language in an agreement that would prevent a client from reporting a broker-dealer’s actions," says one attorney.
Be dubious about investment professionals who are marketing investments through an affinity group, one industry executive says.
"These types of brokers and executives are the scourge of the industry," said one plaintiff's attorney.
