The Securities and Exchange Commission charged Merrill Lynch, Pierce, Fenner & Smith Inc. with failing to perform required gatekeeping functions in the unregistered sales of securities on behalf of a China-based issuer. The order found the Bank of America unit sold nearly 3 million shares of Longtop Financial Technological Limited’s securities despite red flags indicating that the sales could be part of an unlawful unregistered distribution. Merrill Lynch didn’t admit or deny findings and paid a $1.25 million penalty and more than $154,000 in disgorgement and prejudgment interest.
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