FOR IMMEDIATE RELEASE
Thursday, August 01, 2013
Contact: Kevin Flannery, (573) 526-0949
Kander Recovers $1.6 Million for Investors
Jefferson City, Mo. — Missouri Secretary of State Jason Kander today announced that his office has recouped more than $1.6 million in investors’ savings that was misappropriated by a former employee of Merrill Lynch, Pierce, Fenner & Smith Incorporated. The former agent, Greg John Campbell, operated a complex, four-year fraudulent scheme involving unauthorized activity in the accounts of Merrill Lynch clients, including changing clients’ addresses, transferring money from client accounts to pay for personal expenses, and forging letters of authorization from client accounts.
After learning of the fraud, Kander’s office took immediate action to prevent Campbell from misleading and defrauding more investors. In May, the Securities Division of Kander’s office fined Campbell and barred him from registering as an agent in the state of Missouri in a final order.
"I am committed to protecting Missourians and their hard-earned savings and investments," Kander said. "When agents or advisors mislead their trusting clients and steal their savings, my office will do everything in its power to get that money back."
Kander expressed appreciation to Merrill Lynch for stepping forward and taking responsibility after learning of Campbell’s actions.
"When companies with rogue employees cooperate with our office, we can reach the best remedies for Missourians in the quickest way possible," Kander said. "Today, because of Merrill Lynch’s cooperation, that remedy is returning more than $1.6 million of hard-earned savings to its rightful owners."
The consent order alleges that Merrill Lynch failed to detect Campbell’s unauthorized activity in some client accounts, failed to adequately supervise Campbell and failed to properly report client complaints. Merrill Lynch terminated one of Campbell’s supervisors for "failure to elevate a compliance matter and to report client complaints."
In the consent order, Merrill Lynch accepted a censure, agreed to compensate clients for all unauthorized withdrawals Campbell made and agreed to make a payment to the Missouri Investor Education and Protection Fund.
Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.
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