SEC Reportedly Bars Merrill Lynch Advisor Richard Crabtree after Allegations of Fraud
According to the Securities and Exchange Commission on September 23, 2022, the agency has reportedly barred investment advisor Richard M. Crabtree (CRD#: 1855649) for allegedly defrauding his advisory client about the investments in the client’s accounts, their performance, and the value of his client’s assets.
According to the SEC’s complaint, between 2016 and 2020, Crabtree, who was reportedly a Senior Vice President at an Investment Advisor in Annapolis, Maryland, allegedly deceived his client into believing that he had invested $250,000 of the client’s funds into a private investment partnership that was held outside of the Investment Advisor.
Crabtree allegedly lied to his client that the trading strategy was highly profitable and that his client’s interest in the private investment partnership grew close to $10 million. However, Crabtree purportedly never invested any of the Client’s funds into any investment. Crabtree also purportedly falsified records to hide his alleged fraud.
According to his FINRA Broker Report, Crabtree has been registered with Merrill Lynch in Annapolis, Maryland as an investment advisor and broker for more than thirty years. He reportedly has four customer complaints filed against him. Allegations include misrepresentations and unsuitable investments among others.
In addition to the bar, Crabtree was reportedly ordered to pay a civil penalty of $40,000.
FINRA Lawsuits to Recover Investment Losses
The White Law Group is investigating potential securities claims involving former Richard Crabtree and the liability that his former employer, Merrill Lynch, may have for failure to properly supervise him.
When brokers abuse client accounts or conduct transactions that violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. 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.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about investments with Richard Crabtree and Merrill Lynch, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.
For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.
Tags: Richard Crabtree, Richard Crabtree Annapolis, Richard Crabtree complaints, Richard Crabtree FINRA, Richard Crabtree fraud, Richard Crabtree investigation, Richard Crabtree lawsuit, Richard Crabtree Losses, Richard Crabtree Merrill Lynch, Richard Crabtree unsuitable investment Last modified: December 6, 2022