Bank of America Merrill Lynch has admitted to systematically misleading clients about how it handled stock orders thus violation New York's Martin Act.
New York Attorney General Eric Schneiderman said Bank of America Merrill Lynch will pay $42 million penalty to the State to settle the investigation into fraudulent practices in connection with BofAML's electronic trading services.
BofAML admits that it systematically concealed from its clients over a five-year period that it was secretly routing its clients' orders for equity securities to other firms such as Citadel Securities, Knight Capital, D.E. Shaw, Two Sigma Securities, and Madoff Securities, for execution.
Schneiderman's investigation uncovered that BofAML made other misleading statements to its clients regarding several aspects of its electronic trading services, which made BofAML's electronic trading services appear safer and more sophisticated than they really were.
"Bank of America Merrill Lynch went to astonishing lengths to defraud its own institutional clients about who was seeing and filling their orders, who was trading in its dark pool, and the capabilities of its electronic trading services," Attorney General Schneiderman said.
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April 10, 2026 16:21 ET Inflation data from the U.S. was the main data event this week as the conflict in the Middle East continue. The minutes of the latest Fed policy session and the survey data on the services sector also made headlines. In Europe, manufacturing orders data from Germany was in focus. Price data from China drew attention in Asia.