The Two Faces of Merrill Lynch Stock Advice
Sometime in 2001, Merrill
Lynch was found to have been publicly promoting investments that they
had ridiculed in private. Regulators suspect that these false statements
were made to secure investment banking deals with the companies whose
stock was being advocated.
One of these clients is believed
to be Enron. In 1998, the Merrill Lynch analyst
responsible for the downgrade of Enron's stock appraisal resigned, the
stock was upgraded, and the two companies made deals for profitable
stock offerings. Some of the schemes caused debt to disappear, or to
never appear, in Enron's books, and other schemes created artificial
profits. Click here to read the SEC's
charges against Merrill Lynch and Enron.
Some of the Merrill Lynch
stock fraud suits target specific individual employeessuch as
analyst Henry Blodgett, whose bad investment advice sparked Merrill
Lynch stock fraud investigations that examined analysts internal
emails with their public stock recommendations. Click
here to read the emails between Blodgett and
other Merrill Lynch employees.
After a thorough
investigation by Elliot Spitzer, Attorney General of the State of
New York, Merrill Lynch has reached a settlement including fines and
promises to correct the fraudulent practices.
If you have purchased shares
in any of the following stocks from Merrill Lynch, you may have a potential
stock fraud claim. Contact the Consumer Justice
Group immediately for an evaluation of your case.
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The Investment & Stock Fraud News is a service of the Consumer Justice Group.