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Merrill Lynch Found Liable and Ordered to Compensate Investor Patricia McNamara

PR Newswire

A National Association of Securities Dealers (NASD) arbitration panel found liable and ordered Merrill Lynch (NYSE: MER – news) to pay Patricia McNamara a total of $192,000 for the company’s breach of fiduciary duty and failure to supervise registered representative Robert Morgart in its Sante Fe, New Mexico office.

In her claim, Patricia McNamara, a 78 year widow stated that she needed income from her account to pay for living expenses and to support two mentally disabled children. At the hearing Patricia McNamara, proved that Merrill Lynch had recommended securities in technology and Internet related companies that were unsuitable based on her financial needs and station in life.

Some of the securities purchased by Merrill Lynch including CMGI (Nasdaq: CMGI – news), Exodus Communications (Nasdaq: EXDS – news), InfoSpace, Inc. (Nasdaq: INSP – news) and Inktomi (Nasdaq: INKT – news) have come under scrutiny following New York Attorney General Eliot Spitzer’s investigation of Merrill Lynch and Internet analyst Henry Blodget.

The firm represents customers of Merrill Lynch and other brokerage firms who have money due to wrongful conduct of the brokerage firms including misleading analyst recommendations.