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Meyer Wilson Investigates Former Merrill Lynch Trader

Wafa Azeem

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.