Securities Lawyers Blog
According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor James Merkel (Merkel), in August 2017, was terminated by his employer Merrill Lynch, Pierce, Fenner & Smith Incorporated (Merrill Lynch) after the firm alleged that Merkel violated firm policy relating to selling away.
Prior to the firm’s termination, in June 2016 a customer filed a complaint alleging unsuitable investment recommendations and misrepresentation and omission of material facts involving options. The customer alleged $1,000,000 in damages and the claim is currently pending.
At this time it is unclear the extent and scope of Merkel’s securities violations and outside business activites. Merkel’s CRD lists that he operates an outside business activity concerning real property. Merkel also lists an entity called Merkel’s Lfan LLC that is a business that produces adironack chairs and other items. At this time it is unknown the exact nature of the firm’s allegations concerning private securities transactions – a practice known in the industry as “selling away”.