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Allegations of Selling Away Made Against Broker Todd Mercer

Todd Mercer (CRD#: 2270311) is a dually registered Broker and Investment Advisor at Sanctuary Securities, Inc. in Indianapolis, IN.

Broker’s Background

He entered the securities industry in 1992 and previously worked for Merrill Lynch, Pierce, Fenner & Smith, Inc.; UBS Financial Services, Inc.; Morgan Keegan & Company, Inc.; Fifth Third Securities, Inc.; Liberty Securities Corporation; NatCity Investments, Inc.; Independent Financial Securities, Inc.; National City Investment Corporation; and Merrill Lynch, Pierce, Fenner & Smith, Inc.

Current And Past Allegations Of Conduct Leading To Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in December 2021, Todd Mercer voluntarily resigned from Merrill Lynch, Pierce, Fenner & Smith, Inc. after allegations that included selling away. The allegation states, “Conduct including failure to disclose outside business activities, failure to follow Firm standards regarding selling away and participating in a financial arrangement with a client.”

In addition, Todd Mercer has been the subject of two customer complaints, including one that remains pending, including the following:

  • March 2021 – “The Plaintiff, who is not a customer of the firm, alleges selling away in September of 2019, and that the Financial Advisor engaged in an undisclosed outside business activity.” The customer dispute is pending.
  • November 2000 – “Misrepresentation.” Damages of $77,531 were granted.

For a copy of Todd Mercer’s FINRA BrokerCheck, click here.

We Help Investors Recover Investment Losses

The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.

The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]