The Financial Industry Regulatory Authority has barred a former Merrill Lynch general securities representative from associating with any FINRA member in all capacities after he refused to cooperate with investigations by both the firm and the industry self-regulator into whether he improperly requested and received a COVID-19 Economic Injury Disaster Loan.
Without admitting or denying FINRA's findings, Scott Madison signed a FINRA letter of acceptance, waiver and consent on Aug. 18, agreeing to be barred from the industry. FINRA signed the letter Monday.
Merrill declined to comment Friday. Gregg Breitbart, a Florida attorney with Kaufman Dolowich & Voluck who represented Madison, did not immediately respond to a request for comment.
A Growing Trend
This is just the latest of several cases in which FINRA has sanctioned brokers and advisors related to requests for COVID-19 emergency loans.
For example, FINRA fined and suspended ex-Wells Fargo rep Kenric L. Sexton, whose firm terminated him, saying he "applied for business support from the Small Business Administration when the employee did not have a pre-existing formal business as required."
More Details
Madison was registered with FINRA through multiple firms from March 2001 to December 2017, including Stifel, Barclays Capital, Credit Suisse Securities, Goldman Sachs and Jefferies & Co., according to his report on FINRA's BrokerCheck website.
