Merrill Lynch, Wells Fargo and Linsco Fined $19.4 Million for Improper Sales of Class B and C Mutual Fund Shares

The NASD has fined and has required the three firms to offer remediation for nearly 140,000 transactions involving more than 29,000 households, specifically the right to convert B and C shares to a more beneficial share class.

Merrill has been fined $14 million, Wells Fargo $3 million and Linsco $2.4 million. According to the NASD, these fines approximate the additional commissions that the firms had received by selling the improper class of mutual fund shares to their customers.

Earlier this year the NASD fined and required remediation from Citigroup Capital Markets, American Express Financial Advisors (now known as Ameriprise) and Chase Investment Services.

Source: NASD Press Room Release, 12/19/05