Violation Tracker Individual Record

Company: 
Merrill Lynch, Pierce, Fenner & Smith Inc.
Current Parent Company: 
Bank of America
Penalty: 
$3,500,000
Year: 
2006
Date: 
November 22, 2006
Offense Group: 
financial offenses
Primary Offense: 
investor protection violation
Secondary Offense: 
financial institution supervision failures
Violation Description: 

Merrill Lynch agreed to pay a $1 million fine, $500,000 to the Connecticut Department of Education, $1.5 million to its foundation for promotion of financial literacy, and $500,000 to the National White Collar Crime Center, in settlement of allegations it failed to supervise its agents, allowing them to engage in Market Timing, a prohibited practice of trading in mutual funds to exploit pricing inefficiencies.

Level of Government: 
state
Action Type: 
agency action
Agency: 
Connecticut Securities and Business Investments Division
Civil or Criminal Case: 
civil
Facility State: 
Connecticut
HQ Country of Parent: 
USA
HQ State of Parent: 
North Carolina
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
financial services
Specific Industry of Parent: 
banking
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.