Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) former advisor Christopher Hibbard (Hibbard), formerly associated with Merrill Lynch, Pierce, Fenner & Smith, Incorporated (Merrill Lynch) in Louisville, Kentucky was terminated for cause by Merrill Lynch in January 2018 after the firm made allegations that Hibbard engaged in conduct including unauthorized transactions and theft. Thereafter, in February 2018 Hibbard was barred by FINRA for failing to respond to the regulatory requests for information. In April 2018 it was disclosed that an investigation of Hibbards activities had been opened by the United States Attorney’s Office, Western District of Kentucky. The investigation involves the unauthorized use of client funds by Hibbard during his employment with Merrill Lynch. In addition, eight customers have brought complaints against Hibbard alleging misappropriation of funds.
The allegations concerning conversion are often accompanied by claims of engaging in outside business activtiies and private securities transactions – a practice known in the industry as “selling away” – a serious violation of the securities laws.