· Former Merrill Lynch broker Terrance Hood
· Ex-RBC Capital Markets broker Jonathan Freehill
· Former Signator Investors broker Dennis Ferwerda
Ex-Merrill Lynch Broker Accused of Falsifying Receipts
Terrance Hood was a Merrill Lynch broker in San Antonio, Texas. He is accused of falsifying receipts so he could qualify for childcare cost reimbursements on two dozen occasions. Merrill Lynch fired him in April over the “inaccurate” receipt filings.
The FINRA settlement against him accuses Hood of turning in the falsified receipts throughout 2015 and 2016 so he could qualify for $4910.00 in reimbursements even though he did not meet the qualifications. Merrill Lynch allows eligible employees to get reimbursed for childcare costs for payments made to a childcare provider. However, the provider that Hood named in his submissions did not take care of his kids during the times that he claimed.
FINRA contends that because Hood took money for the reimbursements from the broker-dealer even though he didn’t actually qualify for the funds, he broke FINRA Rule 2010.
Hood is settling with the self-regulatory authority but without admitting to or denying the findings.
His BrokerCheck record notes that he was previously a broker for Banc of America Investment Services, Inc. and Citigroup Global Markets (C). He also previously was a registered investment adviser.
Merrill Lynch is now a Bank of America (BAC) subsidiary.
Ex-RBC Capital Markets Broker Accused of Taking $5K From an IRA
In an unrelated case, FINRA barred ex-RBC Capital Markets broker Jonathan Freehill, who consented to the settlement but is not denying or admitting to the findings. Freehill, who worked for the firm in Texas, is accused of taking $5K from the retirement account of his then-wife to pay a debt that his brother owed. At the time, he was the broker for her IRA. The self-regulatory said that he took the money out of her account without her permission or knowledge.
Ex-Signature Investors Broker Accused of Selling Woodbridge Notes Didn’t Cooperate with Probe
David Ferwerda, who was fired from Signature Investors Inc. earlier this year for allegedly selling outside investments that had not been approved by the firm, is now barred by FINRA. According to the SRO, Ferwerda did not provide the information and documents requested in FINRA’s probe into allegations that he sold Woodbridge Group of Company notes. Woodbridge is accused of operating a $1.2B Ponzi fraud that impacted 8,400 investors.
FINRA also had wanted Ferwerda to provide information involving investments in 1 Global Capital, which is under investigation over an alleged $283M loan fraud.
He is not denying or admitting to FINRA’s findings despite accepting the SRO’s order and settling.
A few months after he was fired, a Signator Investors client filed a customer dispute accusing the former broker of offering information that was erroneous, which allegedly led to possible tax liabilities.
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