From the May 01, 2009 issue of Futures Magazine • Subscribe!

Merrill Lynch to pay $39.8 mil

The fallout from the collapse of commodity brokerage Refco continued when the Financial Industry Regulatory Authority (Finra) ordered Merrill Lynch to pay $39.8 million ($30.6 million, plus 9% interest per year from Nov. 5, 2005) to the Masonic Hall and Asylum Fund on March 16. The claimant alleged negligence and breach of contract related to the purchase of interests in Sphinx Managed Futures Index Fund, a Cayman investment fund managed by Refco.

Advest Inc, which Merrill acquired in 2005, was also named in the Finra arbitration. According to the award, Merrill will receive any interest, up to the award, the claimant receives related to ongoing litigation involving the Sphinx fund and the liquidation of the Sphinx fund.

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