Merrill Lynch Broker Michael F. Ginestro Faces $2.4 Million Pending Customer Dispute

Michael F. Ginestro (CRD #2468911), a long-time Merrill Lynch broker based in Los Angeles, is under scrutiny after an investor filed a $2.4 million Financial Industry Regulatory Authority (FINRA) arbitration complaint in May 2025. The filing accuses Ginestro of unsuitable investment recommendations, misrepresentations and omissions tied to municipal bond strategies.

Pending $2.4 Million Customer Complaint 

According to FINRA’s records, a customer filed an arbitration claim against Ginestro on May 14, 2025. The complaint alleges that from 2019 through January 2023, Ginestro implemented an unsuitable investment strategy involving municipal debt securities while failing to properly disclose material risks and information. The customer further contends that Ginestro’s actions amounted to misrepresentation, omission of material facts and failure to act in the client’s best interest.

The client seeks $2.4 million in damages, and the case remains pending. Merrill Lynch, Ginestro’s current firm, is named in the filing.

What Investors Should Know

Municipal bonds and other fixed-income products are typically viewed as conservative investments designed to preserve capital and generate steady income. However, the allegations in this case suggest potential concerns about suitability, concentration risk or leverage within accounts that should have prioritized safety.

FINRA’s complaint indicates that the client may have been exposed to inappropriate levels of risk or misled about the nature of the investments. Unsuitable municipal bond strategies, especially those involving margin, interest-rate exposure or complex structures, can result in substantial losses despite appearing low-risk on the surface.

While a single pending complaint does not prove misconduct, a multi-million-dollar arbitration claim alleging unsuitability and misrepresentation is significant and warrants careful attention.

Investors who worked with Michael Ginestro through Merrill Lynch’s Private Banking and Investment Group (PBIG) should consider reviewing their municipal bond allocations and account performance between 2019 and 2023. FINRA arbitration matters are confidential, but if allegations are substantiated, outcomes may include restitution, settlements or formal findings of misconduct.

Protect Your Rights as an Investor

If you’ve experienced unexpected losses or received advice that seemed inconsistent with your investment goals, it’s important to take action. Allegations involving unsuitable municipal bond strategies and misrepresentation can point to deeper issues in how accounts were managed or risks were communicated.

Sonn Law Group represents investors nationwide in cases involving broker misconduct, unsuitable recommendations and failures to act in clients’ best interests. Our attorneys have extensive experience pursuing recovery through FINRA arbitration and other dispute resolution forums.

We operate on a contingency fee basis, meaning you pay no upfront fees — we only receive payment if we recover compensation on your behalf.

Call 833-912-3000 or complete our online contact form to schedule a confidential consultation and learn more about your potential recovery options.