Former Merrill Lynch broker banned for stealing $1M from clients

Banned from industry for stealing funds to invest in company, buy condo and pickup
NOV 19, 2013
The Securities and Exchange Commission has banned a former Bank of America Merrill Lynch broker from the securities industry for stealing from clients. Federal prosecutors said James R. Lanier of Tallahassee, Fla., forged his clients' signatures on letters authorizing wire transfers from their accounts to his. Authorities said Mr. Lanier illegally used nearly $1 million in client funds to invest in a cellular telecommunications business, as well as to buy a condominium and pickup truck, among other uses. “Lanier's unlawful conduct was recurring and egregious,” SEC Administrative Law Judge Carol Fox Foelak wrote in a decision filed on Tuesday that was not contested by Mr. Lanier. “Extending over a period of several years, it involved hundreds of thousands of dollars.” Mr. Lanier pleaded guilty to 22 counts of fraud and related charges last November. He was sentenced to 8 years and 10 months in federal prison and ordered to pay $887,931 in restitution. William P. Halldin, a spokesman for Bank of America Corp., which owns Merrill, said the company has already reimbursed the victims and that the bank is owed the restitution amount. Bank of America learned that the money was misappropriated in March 2010 and notified authorities, Mr. Halldin said. Mr. Lanier was employed by Merrill between September 2008 and March 2010, authorities said. Efforts to reach Mr. Lanier or a lawyer working on his behalf were unsuccessful.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave