FINRA’s Department of Enforcement investigated Petersen and found between January 2014 and March 2014, she converted approximately $108,000 from four of her customers’ brokerage accounts. In order to perpetrate this scheme, FINRA alleges Petersen facilitated wire and other account transfers to her own bank account. According to FINRA, Petersen then used the converted funds for her personal use and benefit. Of course, the customers neither authorized nor were aware Petersen syphoned funds from the client’s account to pay for her own personal expenses.
FINRA alleged Petersen’s misconduct violated several financial industry rules and regulations including FINRA Rules 2010 and 2510. FINRA Rule 2010 requires its members to exhibit “high standards of commercial honor and just and equitable principles of trade.” Here, Petersen improperly used her customer’s funds by converting the funds for her own personal benefit, and therefore, did not exhibit high standards of commercial honor and just and equitable principles of trade
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you lost money investing with Petersen while Merrill Lynch employed her as a general securities representative, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please contact one of our attorneys at (800) 627-2179 to schedule a free consultation.