SEC bans ex-Merrill Lynch broker over fake fund scheme

The penalty also highlights the dangers of brokers using unapproved channels to communicate with prospective clients.

Rajesh Markan, a former private equity broker previously employed by Merrill Lynch and Hilltop Securities, consented to a final judgment by the SEC for his role in a 10-year scheme that solicited approximately $2.7m from 10 clients, ostensibly to be invested in a fund that ended up being entirely fictitious.

The

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