NEWPORT BEACH, Calif.--(http://www.nasd-law.com) announced today that it is investigating potential claims against Merrill Lynch, a part of Bank of America (NYSE:BAC), on behalf of former customers of Gary Harrison Lane (“Lane”). Lane, a former registered representative with Banc of America Investment Services (“BAIS”) and Merrill Lynch, has been indicted on federal charges in connection with allegedly duping elderly and inexperienced investors with a long-running Ponzi-scheme involving U.S. treasury bonds.)--The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”) (
In 2011, Lane entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with the Financial Industry Regulatory Authority (“FINRA”), wherein FINRA found that “from July 11, 2005 through February 28, 2011, Lane converted to his own personal use a total of $4.93 million in checks from eight customers who were misled by Lane into believing they were investing in U.S. Treasury bonds and/or corporate bonds. Instead of investing the customers' money in U.S. Treasury or corporate bonds, Lane, on at least 29 separate occasions and without authorization, deposited checks drawn on the above customers' accounts into his spouse's account to effectuate the above conversion of the customers' funds for Lane's personal use.”
During the time period of July 1999 through October 2009, Lane was registered with BAIS. Thereafter, from October 2009 through March 2011, Lane was registered with Merrill Lynch. Under FINRA Rules, these firms were obligated to properly supervise the activities of Lane during the time he was registered with the firms. As a result of a merger, BAIS became inactive and is now a part of Merrill Lynch. Accordingly, Merrill Lynch may be liable for failing to supervise Lane’s activities while registered at these firms, and could potentially be responsible for compensating customers of Lane for their losses. According to Lane’s CRD report, at least three customers have filed complaints concerning the conduct discussed above. One claim for $950,000, filed in April 2011, was settled for $987,094. Another, seeking damages of $250,000, settled for $345,064.
Former customers of Gary Harrison Lane, BAIS and/or Merrill Lynch can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered significant investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or sustained losses by investing with Gary Harrison Lane, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com