Todd Mercer: Why Did Louisville Advisor Resign from Merrill Lynch?

Sanctuary Securities financial advisor Todd Mercer (CRD# 2270311) has received investor complaints alleging his conduct resulted in damages. Financial Industry Regulatory Authority records show that he is a broker and an investment advisor based in Louisville, Kentucky.

Mr. Mercer’s BrokerCheck report discloses several investor complaints. A complaint filed in 2021, for instance, alleges that as a representative of Merrill Lynch, he sold investments away from the firm and engaged in an undisclosed outside business activity. The pending complaint alleges unspecified damages. 

In a comment on the pending complaint’s disclosure, Mr. Mercer wrote that the complaint was initiated not by the customer but by a third-party trust for a debtor as part of a bankruptcy proceeding. “The representative explained that neither the Plaintiff nor the Debtor Company were clients of the representative,” he commented, adding: “As such, the representative believes the description of the Plaintiff’s allegations is mischaracterized. The representative denies the allegations.”

A second investor complaint, filed in February 2022, alleged he engaged in selling away and an undisclosed outside business activity while a representative of Merrill Lynch. The complaint alleged damages of $750,000 and was denied by the firm. Mr. Mercer denied the allegations in a comment on the disclosure, asserting that the claimant was not his client and has “recanted allegations during sworn testimony.”

A third investor complaint, filed in 2000, alleged that he made misrepresentations of material information, committed fraud, breached his fiduciary duty, and acted negligently while at Fifth Third Securities. The complaint evolved into an arbitration proceeding before a FINRA panel, which issued an award to the claimant of $77,531.

Mr. Mercer’s BrokerCheck report also discloses his 2021 resignation from Merrill Lynch. According to the disclosure, he voluntarily resigned from the firm following allegations of “Conduct including failure to disclose outside business activities, failure to follow Firm standards regarding selling away and participating in a financial arrangement with a client.” A comment on the disclosure notes that he “denies the allegations.”

According to the Financial Industry Regulatory Authority, Todd Mercer holds 27 years of securities industry experience. Based in Louisville, Kentucky, he has been a broker and an investment advisor with Sanctuary Securities and Sanctuary Advisors, respectively, since 2021. His past registrations include Merrill Lynch, UBS Financial Services, Morgan Keegan & Company, Fifth Third Securities, Liberty Securities Corporation, Independent Financial Securities, NatCity Investments, National City Investments Corporation, and Merrill Lynch. His credentials include the passage of five securities industry examinations: the Uniform Investment Adviser Law Examination, or Series 65; the General Securities Principal Examination, or Series 24; the Uniform Securities Agent State Law Examination, or Series 63; the General Securities Representative Examination, or Series 7; and the Securities Industry Essentials Examination, or SIE. He holds 23 state licenses. (Information current as of July 21, 2022.)