May 27, 2014

Timothy Moran Barred by FINRA for Selling Away Hedge Fund

Timothy Damien Moran, a former Paradise Valley, Arizona-based broker employed by Atlanta, Georgia-based FSC Securities Corporation, has been barred by the Financial Industry Regulatory Authority (FINRA) based on findings that Mr. Moran engaged in private securities transactions without providing his firm with prior written notice. FINRA’s findings stated that Mr. Moran introduced firm customers to a Thomas Hampton to discuss possible investment in Mr. Hamptons’ hedge fund, Hampton Capital Management (HCM). Mr. Moran recommended that the customers invest, or consider investing, in HCM. Some of the customers who Mr. Moran introduced to the individual invested approximately $1.69 million. Mr. Moran also invested a total of $150,000 in HCM.

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Dec 13, 2013

Merrill Lynch Settles $131.8 Million Dollar Fraud Claim

The United States Securities and Exchange Commission (SEC) charged Merrill Lynch with false and misleading disclosures relating to two collateralized debt obligations (CDOs) and false records relating to a third CDO. Merrill Lynch settled the case for $131.8 million simultaneous with the filing of the SEC’s charges. According to the SEC, Merrill Lynch hid important facts from investors about a hedge fund known as Magnetar Capital, LLC and its involvement over the selection of collateral for the CDOs Octans I CDO Ltd. and Norma CDO I Ltd. Magnetar had undisclosed conflicts of interest. It bought the equity in the CDOs and hedged that equity position by shorting against the CDOs themselves.

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