A former Merrill Lynch representative has been penalized over violations involving misuse of her firm’s credit card, according to ThinkAdvisor.
The Financial Industry Regulatory Authority suspended Melacknesh Belay Igwe for eight months and ordered her to pay a $5,000 fine.
“Between February 2024 and January 2025, Igwe charged $3,948 for 86 personal meals and car rides to her Merrill Lynch credit card,” FINRA said in its letter of acceptance, waiver and consent. “She submitted these charges to the firm for reimbursement, characterizing them as business expenses despite knowing that they were personal expenses. In some of her expense reports, Igwe falsely represented that clients attended meals to create the appearance of a legitimate business purpose.”
Igwe was found to have violated FINRA Rule 2010 requiring members, in conducting their business, to observe high standards of commercial honor and just and equitable principles of trade.
In this case the violation involved using or causing firm funds to be applied in a manner not permitted by the firm. Merrill Lynch’s expense policy allowed employees to charge meals and car rides to corporate credit cards only for legitimate business purposes, such as hosting clients. The policy prohibited employees from using corporate credit cards for personal expenses.
FINRA investigated after Merrill Lynch filed a Uniform Termination Notice for Securities Industry Registration (Form U5) on Igwe’s behalf in April 2025 disclosing that the firm discharged Igwe for “[c]onduct involving submission of inaccurate business expense reports.”
Igwe accepted and consented to the findings by FINRA without admitting or denying them:
The attorneys at Hyman Cotter have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter at (833) 665-0784 or through our online contact form for a no-cost evaluation of your matter.
