A former Merrill Lynch broker has been barred by the Financial Industry Regulatory Authority for his refusal to cooperate with an investigation into his request for a pandemic relief loan, according to AdvisorHub.
According to the terms of a Letter of Acceptance, Waiver, and Consent (AWC) signed last week, Scott G. Madison did not admit or deny or any wrongdoing in the case but did agree to the bar imposed by FINRA.
Madison, who had been with Merrill Lynch for the past four years, was registered with FINRA with several firms since he entered the industry in 2001. The regulatory authority launched an investigation when Merrill Lynch stated that Madison had been discharged for not cooperating with the firm’s investigation into whether he wrongly applied for and received a COVID-19 loan for small businesses. Merrill Lynch said Madison had failed to produce documents that were requested as part of the firm’s review.
FINRA’s own investigation concluded that Madison was in violation of its “catch all” Rule 2010, requiring representatives to observe high standards and refrain from any unethical business conduct. He also was determined to be in violation of Rule 8210, which governs the provision of information and testimony.
It was the latest in a number of recent cases in which FINRA has taken disciplinary action against brokers who improperly requested COVID-19 relief loans, meant to help struggling businesses during the pandemic.
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