Merrill Lynch pays $40 million to Settle Broker Churning Allegations

Broker Charles E. Kenahan – Merrill Lynch, Boston MA

According to an article in CNBC on Friday, Merrill Lynch reportedly paid a whopping $40 million settlement to a customer who alleged his broker, Charles E. Kenahan, churned his account. The broker dealer is reportedly facing a second claim for $42 million from another customer of Kenahan’s.

According to the article, the customer who filed the claim is Robert Levine, co-founder of one-time network equipment maker Cabletron Systems.

Kenahan was reportedly registered with Merrill Lynch in Boston, Massachusetts from 2007 until he was allegedly dismissed from the firm last week, according to his FINRA BrokerCheck report.

The lawsuit was filed in March 2018 for allegations of “unsuitable investment recommendations, excessive trading and misrepresentation from February 2012 until December 2017.”

There is a second complaint reportedly pending with requested damages in excess of $42 million.

According to CNBC, the second complaint, filed in February 2018,was reportedly brought by Craig Benson, the former governor of New Hampshire and co-founder of Cabletron with Levine.

Recovery of Investment Losses

When brokers abuse client accounts and conduct transactions that violate securities laws, such as churning, and unauthorized trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.

Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you are concerned about your investments with Charles E. Kenahan, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 1-888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.  The firm represents investors in claims against their brokerage firm throughout the country.

For more information on The White Law Group and its FINRA arbitration practice, please visit https://whitesecuritieslaw.com.

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