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Merrill Lynch Adviser Resigns Over Expense Account Abuse

By Erwin J. Shustak, Esq. of Shustak Reynolds & Partners, P.C. posted on Tuesday, February 14, 2017.

Erwin Shustak, Esq.
619.696.9500 ex. 109
[email protected] 

A Merrill complex director in Ohio has parted ways with the firm over his personal expense report. John R. Nicholson, a manager in the Cincinnati area, who was a 21 year veteran of Merrill, was permitted to resign after a firm review “determined that the registered representative made improper submissions of personal expenses for reimbursement."

This was at least the second high-profile termination at Merrill in the past several months over improper expense reporting. Previously, the firm terminated Sandy Galuppo, who had been with the firm since 1995 and reportedly had more than $1.4 billion in client assets, due to “conduct including improper submissions of personal expenses for reimbursement, resulting in management’s loss of confidence." Galuppo had been ranked by industry publications as a top advisor at Merrill.

These two high-level terminations raise the question of whether Merrill, which is now part of Bank of America, is raising the scrutiny of adviser expense reimbursements of its more than 15,000 brokers.

 Shustak Reynolds & Partners, p.c. focuses in the areas of securities, financial services and complex business disputes. For more information, contact our managing partner, Erwin Shustak. More information is available at www.shufirm.com.

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