Broker Investigation: Linda C. Milberger

The Financial Industry Regulatory Authority (FINRA) Department of Enforcement has filed a complaint (No. 2015047303901) against Linda C. Milberger (CRD No. 4939206) and Kyle Harrington (CRD No. 2282328). This complaint alleges that Ms. Milberger, previously the top assistant to registered broker Kyle Harrington, helped Mr. Harrington conceal the unlawful conversion of customer funds. Here, our securities fraud lawyers review the allegations raised in the disciplinary complaint.


FINRA Complaint: Linda C. Milberger and Kyle Harrington

According to FINRA, the underlying misconduct in this case occurred in August of 2012. At that time, Mr. Harrington and Ms. Milberger were employed at National Securities Corporation in San Diego, California. FINRA alleges that Mr. Harrington convinced a customer to authorize a wire transfer of $20,000. The customer was informed that this was for an investment opportunity. However, FINRA contends that this money simply went into Mr. Harrington’s business account.

For her part, FINRA alleges that Ms. Milberger helped to conceal the conversion of funds. As difficulties arose in getting the $20,000 wire transfer approved, FINRA notes that it believes that Ms. Milberger altered the wire request form that the customer had signed, without the knowledge or approval of the customer. Among other things, FINRA alleges that Linda C. Milberger violated Rule 4511, which requires brokers and associated persons to preserve all documents and financial records in their original form.


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