The State of New Hampshire is investigating two former Merrill Lynch brokers Charles Kenahan and Dermon Cavanaugh, who allegedly churned the account of former New Hampshire governor Craig Benson.
New Hampshire regulators have approached Merrill Lynch with their findings, and stated that settlement talks are underway. Both parties have refused to comment on the investigation.
Former Governor Submits Arbitration Claim for Losses of Over $50M
According to reports, Mr. Benson filed an arbitration claim against Merrill Lynch and the two brokers. He is claiming losses of more than $50 million and market-adjusted damages of more than $100 million.
A Merrill Lynch spokesperson released a statement saying that Merrill Lynch disputed the claim — stating that the case didn't add up. The statement explained that it was unlikely for a "high net worth investor" to be unaware of dubious activity in his account for more than a decade.
Last year, the firm paid $40 million to settle similar claims filed by Robert Levine, the co-founder of Cabletron System, and Mr. Benson's business partner.
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