The Securities and Exchange Commission has charged four former executives of Merrill Lynch & Co. with aiding and abetting securities fraud in connection with two 1999 transactions conducted by Enron Corp.
The agency on Monday also brought charges against Merrill itself, but simultaneously approved a previously announced settlement of the case with the brokerage firm.
Merrill Lynch said it entered into the settlement without admitting or denying wrongdoing to resolve the inquiry and put the matter behind it. The resolution concludes the SEC’s investigation into Enron-related matters with respect to the company.
Under the agreement, Merrill Lynch will pay a total of US$80 million in disgorgement, penalties and interest. Merrill has recorded this payment in its fourth quarter 2002 financial results, as it represents a subsequent event according to accounting principles.
Merrill says it has always cooperated fully with regulators and required all of its employees to cooperate as well. Those who did not were terminated. As part of its effort to cooperate, Merrill Lynch informed the SEC about one of the transactions at a time when the firm believed the commission was unaware of the transaction.
The four former executives named in the SEC’s complaint were Robert Furst, Schuyler Tilney, Daniel Bayly and Thomas Davis. The agency said all four are contesting the charges.
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Former Merrill execs face SEC fraud charges
Firm agrees to US$80 million settlement related to Enron
- By: IE Staff
- March 17, 2003 March 17, 2003
- 14:50