Finra bars ex-Merrill Lynch broker for falsifying childcare expenses

Finra bars ex-Merrill Lynch broker for falsifying childcare expenses
The broker, Terrance Hood, was fired by Merrill last year for falsifying receipts for childcare expenses
NOV 05, 2018

The Financial Industry Regulatory Authority Inc. barred on Friday a former Merrill Lynch broker for falsifying receipts to qualify for $4,910 in reimbursement for childcare expenses. According to the Finra settlement, the broker, Terrance Hood, submitted falsified receipts from January 2015 to December 2016 to receive childcare reimbursements from Merrill Lynch that he was not qualified to receive. Mr. Hood accepted the settlement without admitting to or denying Finra's findings. Merrill Lynch fired Mr. Hood last April due to having submitted "inaccurate" childcare reimbursement forms, according to his BrokerCheck profile. Mr. Hood was based in San Antonio, according to his BrokerCheck profile. He could not be reached for comment. Merrill Lynch and the rest of the industry has been keeping a close watch on brokers' and financial advisers' expense accounts. For example, two years ago Merrill Lynch fired Sandy Galuppo, who had been with the firm since 1995 and reportedly had $1.4 billion in client assets, due to "conduct including improper submission of personal expenses for reimbursement, resulting in management's loss of confidence," according to Mr. Galuppo's BrokerCheck report. Merrill Lynch offered eligible employees the benefit of receiving reimbursements for out-of-pocket childcare expenses paid directly to the childcare provider, according to Finra. For almost two years, Mr. Hood submitted two-dozen reimbursement requests totaling $4,910 that contained falsified signatures and payment invoices from a childcare provider in order to receive reimbursements, according to Finra. Because he "converted" or took funds from his firm he was not entitled to, he broke industry rules.

Latest News

Finra's Reg BI Enforcement: Is it 'ineffective, costly'?
Finra's Reg BI Enforcement: Is it 'ineffective, costly'?

The industry watchdog's own reports reflect failures to deter "willful" and "repeat" violations, raising a crucial question about the future of regulation.

SEC prepares to back away from defending climate rule in court
SEC prepares to back away from defending climate rule in court

Acting Chairman Mark Uyeda directed SEC staff to initiate a pause in court while the commission awaits a quorum. The SEC may decide to withdraw from defending itself in a lawsuit over last year's climate disclosure rule.

wealth.com welcomes Kathy Wunderli in private wealth push
wealth.com welcomes Kathy Wunderli in private wealth push

The top estate planning platform's veteran hire will lead its legal team's efforts to develop estate planning, tax analysis, and wealth transfer solutions for ultra-high-net-worth clients.

Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam
Morgan Stanley loses $843,000 investor claim stemming from 'gold bar' scam

“If Morgan Stanley had called my client’s son, this wouldn’t have happened,” the investor's attorney said.

LPL welcomes $630M sibling advisor duo from Corebridge
LPL welcomes $630M sibling advisor duo from Corebridge

Meanwhile, Ameriprise has bolstered its own ranks as an LPL defector joins its branch channel in California.

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.