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
Document Reference:
33-9493
Document Details
Legal Case Name
In the Matter of Merrill Lynch, Pierce, Fenner & Smith Incorporated
Document Name
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
Document Date
12-Dec-2013
Document Format
Administrative Proceeding
Allegation Type
Securities Offering
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Censured
Monetary Penalties:
Disgorgement
Individual:
$56,286,000.00
Shared:
Civil Penalty
Individual:
$56,286,000.00
Shared:
Pre-Judgment Interest
Individual:
$19,228,027.00
Shared:
Total Penalty
Individual:
$131,800,027.00
Shared:
