John James informed the regulator that he would not give testimony during its investigation into Merrill's allegations.
SEC and Finra say firm failed to implement reasonable anti-money laundering procedures.
Investor alert advises wariness over too-good-to-be-true stock stories.
Regulator said firm's review system was 'flawed in significant respects.'
RIA firm based in Evansville, Ind., has 13 employees.
Regulator says Ronald Fossum Jr. misappropriated assets and lied to investors.
Up to 30,000 people may not have received payments from insurer.
Warren, Pa.-based bank has 24 advisers in 164 offices in New York, Pennsylvania, Ohio.
Regulator said non-standard trades led to firm miscalculating net capital.
Mark McGrath moves to firm's employee channel in Timonium, Md.
