Broker Alert: Michael Royce Minghenelli Disciplined over Conversion of Funds

A FINRA disciplinary proceeding, signed on the 15th of February, has affirmed broker Michael Royce Minghenelli (CRD # 6067409) converted funds from his member firm. The incident took place in November of 2016 and investigations continued until February 2017. During this time the broker was with Merrill Lynch, Pierce, Fenner and Smith.

In November 2016, Minghenelli stole $200 from his firm in the form of a cash advance on his corporate card. He kept the funds for his own personal use.

The broker was well aware his activity violated company policy. Merrill Lynch does not allow its brokers to use company credit cards for anything other than qualified business expenses. Their procedure also says employees cannot pay personal expenses using business cards.

Merrill Lynch paid the charge on the statement and notified Minghenelli his cash advance did not meet expense guidelines. The broker then lied to his supervisor and said he was not responsible for the cash advance. He even reported ATM fraud to the corporate card company. The broker finally admitted to the transaction only after investigators informed him they had video evidence of him making the ATM withdrawal. Merrill Lynch terminated Minghenelli’s employment in March 2017 due to over the theft.

The broker also did not comply with the FINRA investigation, a violation of industry rules. The FINRA panel affirmed Minghenelli committed the violations and imposed monetary sanctions and will require the broker to pay the cost of the proceedings. Minghenelli has been an advisor since 2011 but is no longer registered with a FINRA member firm.

Have you been a victim of broker theft?

At Sonn Law Group our experienced securities law attorneys work to protect investors rights nationwide. If you have suffered harm due to broker conversion or fraud, call us today for a free case review. We can help recover your losses.

Source: FINRA Disciplinary Proceeding No. 2017053549901, BrokerCheck.com

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