Merrill Lynch and rep to pay $140,000 to Vermont for unauthorized actions

Merrill Lynch and Lawrence K. Barber, a broker who has been with the firm since 1997, will pay the state of Vermont $140,000 as a result of an investigation by state financial regulators into the broker’s conduct.

The firm and the broker will pay a combined administrative penalty of $98,000, the state’s department of financial regulation said in a release, as well as $30,000 to reimburse the department for the costs of its investigation. The firm and broker will also pay a combined $12,000 to the department’s investor education and training fund.

The state investigation revealed that Mr. Barber, who works at Merrill Lynch’s Burlington office, made unauthorized changes to a client’s account, gained inappropriate access to the client’s online account, failed to follow the client’s express instructions, and did not follow Merrill Lynch policies and procedures. The investigation also found that Merrill Lynch failed to adequately supervise Mr. Barber.

In addition to the $140,000 paid to the state, the client has received full restitution from Merrill Lynch for all losses related to these events, the department said.

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