Originally Syndicated on September 12, 2024 @ 12:43 am
Originally published at https://web.archive.org/web/20220524094126/https://www.kurtalawfirm.com/blog/patrick-dwyer/
According to publicly available records, Patrick Dwyer, a stockbroker previously registered with Merrill Lynch, Pierce, Fenner & Smith, discloses 2 pending customer suits, 9 prior customer disputes,, and a termination from employment.
The Financial Regulatory Authority (FINRA) licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers to report customer complaints, disputes, and regulatory sanctions and disclose certain financial matters, such as personal bankruptcy, judgments, and liens.
In September of 2021, FINRA case #21-002251 was filed by customer of Merrill Lynch alleging unsuitable investment recommendations and misrepresentations with alleged damages of $5,3000,000 due to option trading. The case is pending.
A Merrill Lynch customer filed FINRA case #21-03057 in December 2021 alleging unsuitable investment recommendations and misrepresentations with claimed damages of $600,000 due to option trading. The case is still pending.
A Merrill Lynch customer filed FINRA case #20-00814 in March 2020, alleging unsuitable investment recommendations and misrepresentations. The case settled for $20,800.
A Merrill Lynch customer filed FINRA case #19-03812 in December 2019, alleging unsuitable investment recommendations and misrepresentations. The case settled for $145,000.
In March of 2001, a Merrill Lynch customer alleged that they wanted to delay the purchase of a managed consulting portfolio. The case settled for $111,000.
In September of 2021, FINRA case #21-002251 was filed by a customer of Merrill Lynch alleging unsuitable investment recommendations and misrepresentations with alleged damages of $5,3000,000. The case is pending.
A Merrill Lynch client filed FINRA case #21-03057 in December 2021, alleging unsuitable investment recommendations and misrepresentations with alleged damages of $60,000. The case is still pending.
In August of 2019, Dwyer was allowed to resign from Merrill Lynch, where he began working in 10/1993, after allegations that he had engaged in activities inconsistent with Firm standards and policies governing conduct, including relating to governmental lobbying activities that the registered representative represented were taken after consultation with his personal counsel.
According to his BrokerCheck record, Patrick Dwyer (CRD #:2250476) is involved in multiple unsuitability disputes. According to the most recent allegations, Patrick Dwyer recommended an unsuitable investment to his client.
On December 17, 2021, an investor alleged that Patrick Dwyer misrepresented and recommended unsuitable investments. The investor is seeking $600,000; The dispute is pending.
Another dispute from just a few months earlier alleges the same misconduct. In the dispute dated September 2, 2021, the investor seeks $5.3 million.
Two settled investor disputes from 2019 to 2020 allege Patrick Dwyer recommended unsuitable investments. These disputes were collectively settled for $165,800.00.
Three denied disputes from 2005 to 2019 also allege Patrick Dwyer recommended unsuitable investments. Investors should know that a firm may deny a dispute without a third-party review. Denials indicate that the firm denies their representative engaged in misconduct. Investors can still recover losses following a denial.
What is Suitability?
“Suitability” is the term used to describe an ethical, enforceable standard for investments that financial professionals are bound to when dealing with clients. An investment is only considered “suitable” if it meets the suitability criteria outlined in FINRA Rule 2111.
A broker must have exercised due diligence and have an adequate reason for believing that an investment will also be suitable or beneficial for the investor. Investors relying on their brokers for recommendations may recover their losses through FINRA arbitration if their broker recommends an unsuitable investment.
Resignation Details
On August 21, 2019, Patrick Dwyer resigned from his position at Merrill Lynch, Pierce, Fenner & Smith Incorporated, following allegations that he engaged in activities inconsistent with firm standards and policies governing conduct, including conduct relating to government lobbying activities.
Background Information
Patrick Dwyer has passed the following exams:
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 31 – Futures Managed Funds Examination
- Series 7 – General Securities Representative Examination
Patrick Dwyer has worked with the following firm
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
Top Merrill Broker Patrick Dwyer Leaves Amid Accusations
Patrick Dwyer, one of Merrill Lynch’s most successful advisors, has left under a cloud after a 25-year career that took him to the top ranks of the firm’s “private wealth management” group that services ultra-wealthy clients—according to sources inside and outside of Merrill, the broker from Miami, Florida, who oversaw a 12-person team that managed about $3.7 billion and earned over $10 million per year, left this week while under review for a political contribution that the company had not approved.
A spokesman confirmed that Dwyer is no longer employed at Merrill, where, according to his BrokerCheck history, the advisor spent his entire career.
Dwyer did not respond to a call for comment. Barron’s earlier this year ranked him #27 among the top 100 U.S. financial advisors.
The “Miami Herald” reported last month that Dwyer contributed $25,000 in 2018 to the campaign of Florida Chief Financial Officer Jimmy Petronis in an alleged attempt to influence state regulators to support the broker’s bid to expunge seven customer complaints from his record.
Dwyer has been engaged in a long-running campaign to clean his Central Registration Depository record of the complaints.
In 2015, a California judge denied his two-year courtroom battle against Finra (filed under the pseudonym John Doe) for expungement, leading him to file for the record-cleaning under his name in a Finra arbitration. He won the arbitration case in the summer of 2017, but Finra responded in February 2018 with the rare step of seeking to vacate the award. It accused Dwyer of “forum shopping” and of “fraudulent manipulation” by failing to disclose the court decision.
According to court records, Dwyer and Finra reached a stipulated settlement last November. The advisor’s BrokerCheck record continues to show seven complaints, six of which were denied or closed with no action. One from 2001 settled for $111,000.
