Investors Bring Arbitration Claims Against Merrill Lynch For Unauthorized Trading

Scott Geoffrey Madison of Riverhead New York a stockbroker currently employed by Merrill Lynch Pierce Fenner Smith has been identified in a customer initiated investment related arbitration claim where the customer sought $600,000.00 damages founded on accusations that between December 27, 2017 and September of 2019, over-the-counter equities recommendations failed to be suitable for the customer and unauthorized trades were executed in the customer’s account. Financial Industry Regulatory Authority (FINRA) Arbitration No. 19-03299 (Nov. 7, 2019).

According to the claim, the customer had been defrauded on purchases of common and preferred stock purchased through Madison. The claim also alleges that a fiduciary duty that was owed to the customer had been breached by the stockbroker when he was registered with Merrill Lynch.

This is not the first time that Madison has been the subject of an investment dispute relating to his misconduct in the securities industry. FINRA Public Disclosure reveals that Madison is the subject of another customer initiated investment related arbitration claim which was resolved for $800,000.00 in damages based upon accusations of the customer being sold unprofitable auction rate securities. According to the claim, the customer was told by Madison that he would earn twelve percent tax exempt interest in the investments which was not accurate.

Madison has been registered with Merrill Lynch since December 12, 2017.