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

Edward Jones facing more race bias claims in new lawsuit
Edward Jones facing more race bias claims in new lawsuit

A private partnership, Edward Jones is a giant in the retail brokerage industry with more than 20,000 financial advisors.

Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team
Advisor moves: LPL recruitment momentum continues with $815M Northwestern Mutual team

Meanwhile, Raymond James and Tritonpoint Partners separately welcomed father-son teams, including a breakaway from UBS in Missouri.

SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures
SEC chief Atkins signals caution on prediction market ETFs amid broader rethink of novel fund structures

Paul Atkins has asked staff to solicit public comment on novel ETFs, pausing the clock on as many as 24 filings linked to the booming event contracts market.

Private capital's $1 trillion bet on the American retirement account
Private capital's $1 trillion bet on the American retirement account

From 401(k)s to retail funds, Deloitte sees private equity and credit crossing into mainstream investing on two fronts at once.

Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May
Advisor moves: Wells Fargo Advisors pulls in $9.6b in fresh talent during first half of May

Big-name defections from Morgan Stanley, UBS, and Merrill Lynch headline a busy two weeks of recruiting for the wirehouse.

SPONSORED Are hedge funds the missing ingredient?

Wellington explores how multi strategy hedge funds may enhance diversification

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management