Meyer Wilson is conducting an investigation for
charges made by FINRA against Merrill Lynch trader Bharminder Singh (CRD# 5428974)
. Singh is accused of buying Motors Liquidation Company (MLC) notes for
below market value prices and selling them for substantially more to interdealer
markets between August 2009 and December 2010. FINRA alleges that Singh
has violated a number of regulations including section 10(B) of the Securities
Exchange Act of 1934, rules 10b-5, FINRA rules 2020 and 2010, among others.
According to FINRA, his primary duties at the firm were:
- Working at the hybrid and preferred stock trading desk and traded subordinated
debt and hybrid securities
- Serving the needs of MLC’s institutional customers
- Compensation was evaluated by how well his trading book did, his ranking,
and the rating given to him by the firm’s institutional customers.
As expected of Merrill Lynch members, FINRA notes that Singh was required
to deal fairly with the his customers, purchase MLC notes at market value
price, and disclose any unfair offers made. He allegedly failed to do
this when Singh bought retail-sized MLC notes from selling Merrill Lynch
customers at 10%-56.14% below market value and then sold institutional
sized notes to the interdealer market.
An example of this is:
Through December 1-18, 1009, Singh allegedly bought 12,923 MLC notes from
Merrill Lynch retail customers for around $2.90. Then, on December 21,
2009, FINRA alleges that hesold all the notes to the street for $5.20,
making a profit of $30,000.
If you or someone you know conducted transactions involving Motors Liquidation
Company with Bharminder Singh, formerly with Merrill Lynch, contact us
today to schedule a free consultation. You may be eligible for monetary
compensation for the misconduct Singh is accused of.