The Securities Arbitration Law Firm Of Klayman & Toskes Investigates Claims Against Merrill Lynch On Behalf Of Former Customers Of Gary Harrison Lane

The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”) ( http://www.nasd-law.com) announced today that it is investigating potential claims against Merrill Lynch, a part of Bank of America (NYSE:BAC), on behalf of former customers of Gary Harrison Lane (“Lane”). Lane, a former registered representative with Banc of America Investment Services (“BAIS”) and Merrill Lynch, has been indicted on federal charges in connection with allegedly duping elderly and inexperienced investors with a long-running Ponzi-scheme involving U.S. treasury bonds.

In 2011, Lane entered into a Letter of Acceptance, Waiver and Consent (“AWC”) with the Financial Industry Regulatory Authority (“FINRA”), wherein FINRA found that “from July 11, 2005 through February 28, 2011, Lane converted to his own personal use a total of $4.93 million in checks from eight customers who were misled by Lane into believing they were investing in U.S. Treasury bonds and/or corporate bonds. Instead of investing the customers' money in U.S. Treasury or corporate bonds, Lane, on at least 29 separate occasions and without authorization, deposited checks drawn on the above customers' accounts into his spouse's account to effectuate the above conversion of the customers' funds for Lane's personal use.”

During the time period of July 1999 through October 2009, Lane was registered with BAIS. Thereafter, from October 2009 through March 2011, Lane was registered with Merrill Lynch. Under FINRA Rules, these firms were obligated to properly supervise the activities of Lane during the time he was registered with the firms. As a result of a merger, BAIS became inactive and is now a part of Merrill Lynch. Accordingly, Merrill Lynch may be liable for failing to supervise Lane’s activities while registered at these firms, and could potentially be responsible for compensating customers of Lane for their losses. According to Lane’s CRD report, at least three customers have filed complaints concerning the conduct discussed above. One claim for $950,000, filed in April 2011, was settled for $987,094. Another, seeking damages of $250,000, settled for $345,064.

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