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 12-Dec-2013
Initial Filing Format Administrative Action
File Number 3-15642
Allegation Type Securities Offering

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• Section 17(a)(1) Exchange Act; Rule 17a-3(a)(2) Exchange Act

Resolutions

First Resolution Date 12-Dec-2013
Headline Total Penalty and Disgorgement $131,800,027

Related Documents:

33-9493 12-Dec-2013 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b)(4) and 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On December 12, 2013, the SEC instituted settled administrative proceedings against Merrill Lynch for violations of federal securities laws in connection with its structuring and marketing of a series of collateralized debt obligation transactions (CDOs) in 2006 and 2007. According to the Commission, "MLPFS failed to inform investors in Octans I and Norma [CDO issuers named in the order] that an undisclosed third party named Magnetar Capital LLC had rights relating to, and exercised significant influence over, the selection of CDOs' collateral."
2013-261 12-Dec-2013 Press Release--Administrative Proceeding
SEC Charges Merrill Lynch With Misleading Investors in CDOs; Firm Agrees to $131 Million Settlement
On December 12, 2013, the SEC announced that it, "charged Merrill Lynch with making faulty disclosures about collateral selection for two collateralized debt obligations (CDO) that it structured and marketed to investors, and maintaining inaccurate books and records for a third CDO."

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