NORTH DAKOTA

ON OR ABOUT 12/12/2008 WILSON SIGNED A CLIENT'S SIGNATURE TO A LETTER IN ORDER FOR THE AN ACCOUNT TO BE OPENED WITH THE SAME ACCOUNT NUMBER. THE LETTER WAS PROVIDED TO THE CLIENT ASSOCIATE FOR PROCESSING, BUT WAS WITHDRAWN AFTER CA CHALLENGED THE SIGNATURE.

Consent

Civil and Administrative Penalty(ies)/Fine(s)

$1,000.00

Suspension

ALL CAPACITIES

14 DAYS

12/21/2009

1/3/2010

A CLIENT OF MINE, WHO LIVES ABOUT AN HOUR AWAY FROM MY OFFICE, SIGNED AND RETURNED A NEW ACCOUNT FORM AND ALL NECESSARY TRANSFER PAPERWORK TO ME WITH THE INTENTION OF OPENING AN ACCOUNT AND TRANSFERRING IN SOME OF HIS MUTUAL FUND HOLDINGS. IT WAS ON OR ABOUT 12/10/2008 AND HE WANTED TO GET THIS TRANSFER COMPLETED BEFORE THE YEAR-END, SO TIME WAS RUNNING SHORT. I ASKED MY ASSISTANT TO REUSE HIS OLD ACCOUNT NUMBER THAT HE PREVIOUSLY HAD HAD WITH THE FIRM, INSTEAD OF ISSUING HIM A NEW ONE. ANOTHER ASSISTANT IN OUR BRANCH OVERHEARD THIS CONVERSATION ASKED ME TO HAVE HIM SIGN A LETTER, THAT SHE HAD TYPED, STATING THAT HE WANTED TO REUSE HIS OLD ACCOUNT NUMBER. THE CLIENT LIVES IN A TOWN ABOUT AN HOUR DRIVE AWAY FROM MY OFFICE, HE DIDN'T HAVE ACCESS TO A FAX MACHINE AND HE WAS LEAVING TOWN THE NEXT DAY. WE ALREADY HAD A NEW ACCOUNT FORM AND TRANSFER DOCUMENT SIGNED SO I DEBATED THE NECESSITY OF THIS LETTER WITH MY ASSISTANT. I KNEW THAT THERE WAS NO REALISTIC WAY TO GET THE CLIENT TO SIGN THE LETTER AND COMPLETE THE TRANSFER BY THE END OF THE YEAR WITH HIM LEAVING TOWN, SO I SIGNED HIS NAME TO THE LETTER. AT THAT MOMENT, I JUSTIFIED MY ACTIONS AS TRYING TO ACCOMPLISH WHAT THE CLIENT WANTED TO DO. WITHIN 5 MINUTES OF MY ASSISTANT TYPING THE LETTER, I TOOK IT BACK TO HER WITH THE SIGNATURE AND SHE CHALLENGED ME SAYING, "YOU CAN'T DO THAT" KNOWING THAT I COULDN'T HAVE HAD THE CLIENT SIGN IT IN THAT AMOUNT OF TIME. I TRIED TO EXPLAIN WHAT I WAS TRYING TO ACCOMPLISH FOR THE CLIENT AND WE TALKED FOR A MINUTE OR TWO. WITH A CALMER HEAD AND A LITTLE PERSPECTIVE, I REALIZED WHAT A BAD DECISION IT WAS THAT I HAD MADE AND I PICKED THE LETTER UP OFF MY ASSISTANT'S DESK AND TOOK IT BACK INTO MY OFFICE, WHERE I PLACED IT IN A GARBAGE BIN THAT WAS INTENDED TO BE SHREDDED. LATER THAT DAY, I APOLOGIZED TO BOTH OF OUR ASSISTANTS FOR PUTTING THEM IN THAT SITUATION AND THAT I KNEW I HAD MADE A BAD DECISION. A FEW DAYS LATER, I WAS READ THE FIRST FEW LINES OF THIS LETTER BY A MEMBER OF THE FIRM MANAGEMENT TEAM AND ASKED IF I RECOGNIZED IT. I SAID I DID AND VOLUNTARILY TOLD THEM EXACTLY WHAT HAD HAPPENED. I IN NO WAY MADE ANY ATTEMPT TO COVER UP OR HIDE MY MISTAKE. I ASKED THEM TO HELP ME WORK THROUGH THIS BAD DECISION AND MOVE FORWARD IN AN APPROPRIATE MANNER. I WAS TERMINATED FOR MY ACTIONS THE FOLLOWING MONDAY. THE CLIENT IN QUESTION WAS NEVER TOLD ABOUT ANY OF THIS HAPPENING UNTIL HE CALLED MY MOBILE PHONE ABOUT TWO MONTHS LATER, AT WHICH TIME I TOLD HIM THE WHOLE STORY OF WHAT HAD HAPPEND. MERRILL LYNCH HAD NOT TOLD HIM ABOUT ANY OF THIS AND COMPLETED THE TRANSFER OF HIS ACCOUNT INTO THE FIRM. HE CALLED MY MOBILE PHONE BECAUSE MY NAME WAS NOT LISTED ON HIS STATEMENTS AS THE BROKER OF RECORD AND HE WONDERED IF I HAD LEFT TO JOIN ANOTHER FIRM. AFTER HEARING WHAT I HAD DONE, AND WHAT HAD HAPPENED AS A RESULT, THIS CLIENT WROTE A LETTER OF SUPPORT ON MY BEHALF.

MERRILL LYNCH,PIERCE,FENNER &SMITH INC

Discharged

MR. WILSON'S EMPLOYMENT WAS TERMINATED ON DECEMBER 15,2008 AFTER THE FIRM CONCLUDED THAT HE HAD SIGNED A CLIENT'S NAME TO A DOCUMENT.

A CLIENT OF MINE, WHO LIVES ABOUT AN HOUR AWAY FROM MY OFFICE, SIGNED AND RETURNED A NEW ACCOUNT FORM AND ALL NECESSARY TRANSFER PAPERWORK TO ME WITH THE INTENTION OF OPENING AN ACCOUNT AND TRANSFERRING IN SOME OF HIS MUTUAL FUND HOLDINGS. IT WAS ON OR ABOUT 12/10/2008 AND HE WANTED TO GET THIS TRANSFER COMPLETED BEFORE THE YEAR-END, SO TIME WAS RUNNING SHORT. I ASKED MY ASSISTANT TO REUSE HIS OLD ACCOUNT NUMBER THAT HE PREVIOUSLY HAD HAD WITH THE FIRM, INSTEAD OF ISSUING HIM A NEW ONE. ANOTHER ASSISTANT IN OUR BRANCH OVERHEARD THIS CONVERSATION ASKED ME TO HAVE HIM SIGN A LETTER, THAT SHE HAD TYPED, STATING THAT HE WANTED TO REUSE HIS OLD ACCOUNT NUMBER. THE CLIENT LIVES IN A TOWN ABOUT AN HOUR DRIVE AWAY FROM MY OFFICE, HE DIDN'T HAVE ACCESS TO A FAX MACHINE AND HE WAS LEAVING TOWN THE NEXT DAY. WE ALREADY HAD A NEW ACCOUNT FORM AND TRANSFER DOCUMENT SIGNED SO I DEBATED THE NECESSITY OF THIS LETTER WITH MY ASSISTANT. I KNEW THAT THERE WAS NO REALISTIC WAY TO GET THE CLIENT TO SIGN THE LETTER AND COMPLETE THE TRANSFER BY THE END OF THE YEAR WITH HIM LEAVING TOWN, SO I SIGNED HIS NAME TO THE LETTER. AT THAT MOMENT, I JUSTIFIED MY ACTIONS AS TRYING TO ACCOMPLISH WHAT THE CLIENT WANTED TO DO. WITHIN 5 MINUTES OF MY ASSISTANT TYPING THE LETTER, I TOOK IT BACK TO HER WITH THE SIGNATURE AND SHE CHALLENGED ME SAYING, "YOU CAN'T DO THAT" KNOWING THAT I COULDN'T HAVE HAD THE CLIENT SIGN IT IN THAT AMOUNT OF TIME. I TRIED TO EXPLAIN WHAT I WAS TRYING TO ACCOMPLISH FOR THE CLIENT AND WE TALKED FOR A MINUTE OR TWO. WITH A CALMER HEAD AND A LITTLE PERSPECTIVE, I REALIZED WHAT A BAD DECISION IT WAS THAT I HAD MADE AND I PICKED THE LETTER UP OFF MY ASSISTANT'S DESK AND TOOK IT BACK INTO MY OFFICE, WHERE I PLACED IT IN A GARBAGE BIN THAT WAS INTENDED TO BE SHREDDED. LATER THAT DAY, I APOLOGIZED TO BOTH OF OUR ASSISTANTS FOR PUTTING THEM IN THAT SITUATION AND THAT I KNEW I HAD MADE A BAD DECISION. A FEW DAYS LATER, I WAS READ THE FIRST FEW LINES OF THIS LETTER BY A MEMBER OF THE FIRM MANAGEMENT TEAM AND ASKED IF I RECOGNIZED IT. I SAID I DID AND VOLUNTARILY TOLD THEM EXACTLY WHAT HAD HAPPENED. I IN NO WAY MADE ANY ATTEMPT TO COVER UP OR HIDE MY MISTAKE. I ASKED THEM TO HELP ME WORK THROUGH THIS BAD DECISION AND MOVE FORWARD IN AN APPROPRIATE MANNER. I WAS TERMINATED FOR MY ACTIONS THE FOLLOWING MONDAY. THE CLIENT IN QUESTION WAS NEVER TOLD ABOUT ANY OF THIS HAPPENING UNTIL HE CALLED MY MOBILE PHONE ABOUT TWO MONTHS LATER, AT WHICH TIME I TOLD HIM THE WHOLE STORY OF WHAT HAD HAPPEND. MERRILL LYNCH HAD NOT TOLD HIM ABOUT ANY OF THIS AND COMPLETED THE TRANSFER OF HIS ACCOUNT INTO THE FIRM. HE CALLED MY MOBILE PHONE BECAUSE MY NAME WAS NOT LISTED ON HIS STATEMENTS AS THE BROKER OF RECORD AND HE WONDERED IF I HAD LEFT TO JOIN ANOTHER FIRM. AFTER HEARING WHAT I HAD DONE, AND WHAT HAD HAPPENED AS A RESULT, THIS CLIENT WROTE A LETTER OF SUPPORT ON MY BEHALF.