Defendant Name: Merrill Lynch, Pierce, Fenner & Smith Incorporated

Defendant Type: Subsidiary of Public Company
Public Company Parent: Bank of America Corporation
SIC Code: 6021
CUSIP: 06050510

Initial Case Details

Legal Case Name In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
First Document Date 25-Jan-2011
Initial Filing Format Administrative Action
File Number 3-14204
Allegation Type Broker Dealer

Violations Alleged

Exchange Act
• Sec 15(c)
Other
• Section 15(g) Exchange Act; Rule 17a-3(a)(6) Exchange Act

Resolutions

First Resolution Date 25-Jan-2011
Headline Total Penalty and Disgorgement $10,000,000

Related Documents:

34-63760 25-Jan-2011 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings, Making Findings, and and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934
On January 25, 2011, the SEC filed a settled administrative proceeding against Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill"). According to the SEC: "This matter involves two kinds of misconduct at Merrill. First, Merrill's proprietary traders misused institutional customer order information which was improperly disclosed by the firm's market makers. Second, Merrill traders improperly charged mark-ups and mark-downs on certain riskless principal trades of institutional and high net worth customers for which the firm had agreed to charge only a commission equivalent."
2011-22 25-Jan-2011 Press Release--Administrative Proceeding
SEC Charges Merrill Lynch for Misusing Customer Order Information and Charging Undisclosed Trading Fees
On January 25, 2011, the SEC announced that it, "charged Merrill Lynch, Pierce, Fenner & Smith Incorporated with securities fraud for misusing customer order information to place proprietary trades for the firm and for charging customers undisclosed trading fees."