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Written by 11:10 am Blog, Securities Fraud Articles

Securities Fraud Investigation into Jane E. O'Brien

According to reports, former Merrill Lynch broker, Jane E. O’Brien, has pled guilty to defrauding a client out of $240,000.

O’Brien allegedly offered a client the opportunity to invest in a private placement, but instead kept the money for personal use. In addition, O’Brien allegedly borrowed approximately $1.7 million from the client, which she failed to fully repay.

The report indicates that O’Brien was sentenced to 33 months in prison and ordered to pay back the $240,000 she pocketed. It is unclear whether O’Brien defrauded other clients.

According to O’Brien’s FINRA BrokerCheck Report (CRD), the Securities and Exchange Commission (SEC) has alleged that O’Brien borrowed approximately $3 million from six clients in exchange for promissory notes. These notes allegedly were never shown to the brokerage firms that employed O’Brien.

Without admitting or denying the SEC’s allegations, O’Brien consented to the SEC sanctions, and is permanently barred from the securities industry.

When a broker conducts business outside the firm where they are employed, the activity may be considered “selling away.” If a registered broker “sells away” from their firm, the firm may still be liable for negligent supervision of their broker and responsible for investment losses in a FINRA dispute resolution claim.

If you invested with Jane E. O’Brien  and would like to speak to a securities attorney about your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.

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 Boca Raton, Florida.

For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.

Tags: , , , , , , , , , , Last modified: July 17, 2015