New Hampshire investigating churning claims against Merrill brokers

Former governor says the firm, two former brokers were responsible for $50 million in losses

Securities regulators in New Hampshire are investigating claims by former governor and business owner Craig Benson that two former Merrill Lynch brokers, Charles Kenahan and Dermod Cavanaugh, churned his account, according to a report by CNBC.com.

According to the report, New Hampshire regulators have approached Merrill Lynch with their findings and settlement talks are underway. Spokesmen for the New Hampshire Bureau of Securities Regulation and Merrill Lynch declined to comment about an investigation.

Benson has filed an arbitration claim, which is pending, against Merrill Lynch and the two former brokers, alleging losses of more than $50 million and market-adjusted damages of over $100 million.

“We disagree with the claim that has been filed,” a spokesman for Merrill Lynch said in an emailed statement to CNBC.com. “This is a case that doesn’t add up: a sophisticated, high net worth investor who claims to have been unaware of activity in their account for 11 years.”

In June 2019, Merrill Lynch paid a $40 million settlement to Robert Levine, who had alleged that Kenahan churned his account. Levine co-founded Cabletron Systems with Benson.

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