Mandala conned Merrill about his book of business, made off with $780K: DA

Prosecutors say a broker lied about his business successes to trick Merrill Lynch into lending him $780,000. They also claim he spent the loot on a Ferrari sportscar and other niceties..
MAY 19, 2010
Prosecutors say a broker lied about his business successes to trick Merrill Lynch into lending him $780,000. They also claim he spent the loot on a Ferrari sportscar and other niceties. Steven Mandala pleaded not guilty Tuesday in New York to grand larceny and other charges. Defense lawyer Frank Rothman says the case is a dispute over the timetable for repaying the loan. Manhattan prosecutors say the 29-year-old Mr. Mandala concocted phony documents to persuade Merrill he could bring in business worth more than $1 million a year. Prior to applying for a job at the Bank of America unit, Mr. Mandala was a stockbroker with the Maxim Group. In that position, he apparently earned a salary of $100,000. But prosecutors say that Mr. Mandala told Merrill he was a partner at Maxim. He also told his future employer that he managed $300 million worth of assets and generated. $1.5 million for Maxim, according to prosecutors. The DA's office alleges that Mr. Mandala used bogus documents to convince Merrill that he was a top producer at Maxim. To persuade Mr. Mandala to join the firm, Merrill purportedly offered him the large loan. Typically, such loans are only proffered to potential hires who are top performers at their firms. According to court documents, Mandala was far from a stellar performer at either firm. They say he brought in only a couple of small-player clients at Merrill before leaving the firm in June after two months on the job. [The Associated Press contributed to this article].

Latest News

 Younger Americans fear AI's retirement impact, Thrivent finds
Younger Americans fear AI's retirement impact, Thrivent finds

AI-driven job fears are weighing on retirement confidence, especially among Gen Z and Millennials, Thrivent survey finds

FINRA spanks Centaurus with $1.1 million penalty over variable annuity switches
FINRA spanks Centaurus with $1.1 million penalty over variable annuity switches

It’s the second time in as many years regulators have penalized Centaurus Financial for lack of compliance with Reg BI.

Wells Fargo touts AI Teammate to streamline advisors’ workloads
Wells Fargo touts AI Teammate to streamline advisors’ workloads

AI Teammate is embedded within Wells Fargo’s Advisor Gateway desktop platform.

Advisor moves: &Partners reels in $524M RayJay team, Focus firm Eton Advisors welcomes Northern Trust alum
Advisor moves: &Partners reels in $524M RayJay team, Focus firm Eton Advisors welcomes Northern Trust alum

Elsewhere, Ameriprise added a $470 million Wells team in New York, while an ex-Morgan Stanley advisor bolsters UBS' Austin, Texas office.

The exit planning conversations advisors need to have with business owners
The exit planning conversations advisors need to have with business owners

Financial advisors play an essential role in helping small business owners navigate their transition out of the company — and into retirement.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income