Clients of the Merrill Lynch Phil Scott Team Win $880,000 FINRA Arbitration Award Against Merrill

Lax & Neville, LLP recently won an $880,000 FINRA arbitration award against Merrill Lynch for purported sales practice abuses concerning the Merrill Lynch Phil Scott Team and the Merrill Lynch Phil Scott Team Income Portfolio. The Merrill Lynch Phil Scott Team recommended that 100% of Claimants’ assets be invested in the Merrill Lynch Phil Scott Team Income Portfolio, which consisted of 100% equities. In doing so, the claimants asserted that the Merrill Lynch Phil Scott Team ignored the Claimants’ individual risk tolerances and investment objectives. Specifically, the claimants argued that the most egregious fact was that the Merrill Lynch Phil Scott Team recommended that a 90 year old widow in very poor health invest all of her assets in the 100% equities Merrill Lynch Phil Scott Team Income Portfolio. During the arbitration process, Lax & Neville, LLP focused on the Merrill Lynch Phil Scott Team’s disregard of industry and regulatory obligations. In addition to the $880,000 award in compensatory damages, the Panel also granted Claimants’ Motion for Sanctions and “assessed fees for hearings on discovery to Respondent as sanctions against Respondent for untimely compliance with the Panel’s orders to compel the production of documents.”