Reed Smith: Did Merrill Lynch Advisor Misappropriate Funds?

A recent investor complaint against Houston, Texas financial advisor Reed Smith (CRD# 2708938) alleges that he misappropriated customer funds. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Merrill Lynch.

Mr. Smith’s BrokerCheck report discloses one investor complaint. Filed in May 2024, it alleges that as a representative of Merrill Lynch, he misappropriated funds between September 2007 and March 2021. The pending complaint alleges unspecified damages.

Investors should be aware that the misappropriation of customer funds may violate FINRA Rule 2150, under which advisors are forbidden from making “improper use of a customer’s securities or funds.” Misappropriation may also be considered a violation of FINRA Rule 2010, under which registered representatives are required to “observe high standards of commercial honor and just and equitable principles of trade” as they conduct their business. Representatives who act in contravention of these rules may be held liable for damages or subjected to disciplinary action.

According to the Financial Industry Regulatory Authority, Reed Smith holds 28 years of securities industry experience. Based in Houston, Texas, he has been registered as a broker and an investment advisor with Merrill Lynch since 1992 and 1996, respectively. He has no previous registrations. His credentials include the passage of four securities industry qualifying exams: the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. He holds 33 state licenses. (Information current as of August 5, 2024.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.