Scott Geoffrey Madison of Riverhead New York a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith Incorporated has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that he failed to cooperate with FINRA’s investigation into why Merrill Lynch terminated his registration as stockbroker. Letter of Acceptance Waiver and Consent No. 2021070757901 (Aug. 30, 2021).
According to the AWC, on March 19, 2021, FINRA received notification of Madison’s termination. The securities broker dealer filed a Uniform Termination Notice for Securities Industry Registration (known as a Form U5) which showed that Madison allegedly refused to provide documents that Merrill Lynch requested of him. The securities broker dealer made FINRA aware of an internal review, and how part of that investigation concerned his application for an Economic Injury Disaster Loan (EIDL).
The AWC stated that on July 2, 2021, Madison was asked by FINRA to provide documents and information so that it could evaluate why Merrill Lynch terminated his registration. Madison retained legal counsel who relayed to FINRA on August 3, 2021 that Madison was in receipt of its request but would not comply in the investigation. FINRA determined that Madison violated FINRA Rules 2010 and 8210 for refusing to make the required disclosures.
Madison has been identified in two customer initiated investment related disputes regarding accusations of his wrongdoing while registered with Credit Suisse Securities (USA) LLC and Stifel Nicolaus Company Incorporated, Barclays Capital Inc. and Merrill Lynch. FINRA Public Disclosure shows that a customer initiated investment related FINRA securities arbitration claim concerning Madison’s activities was resolved for $800,000.00 in damages based upon allegations that the customer experienced damages on auction rate securities transactions executed by Madison during the time that he was associated with Credit Suisse Securities. According to the claim, the customer invested in the ARS because of the belief that those asset-backed debt investments would be safe and liquid.
Madison has also been referenced in a customer initiated investment related FINRA securities arbitration claim which was settled for $67,500.00 in damages founded on accusations that the customer’s account was churned, and that Madison provided unsuitable recommendations as it pertained to over-the-counter equities while he was registered with Barclays Capital, Merrill Lynch and Stifel Nicolas Company. FINRA Arbitration No. 19-03299 (Dec. 14, 2020). According to the claim, unauthorized trades were effected by Madison and the customer had been defrauded. The claim also alleges that Madison breached a fiduciary duty in reference to the stock trades.
Madison was registered with Stifel Nicolaus Company between December 4, 2015 and December 21, 2017. He was registered with Merrill Lynch between December 12, 2017 and March 19, 2021.