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FINRA Bars Merrill Lynch Broker Accused of Converting State Unemployment Funds

The Financial Industry Regulatory Authority has barred former Merrill Lynch broker, Daemon Johnson.

The Financial Industry Regulatory Authority has barred former Merrill Lynch broker, Daemon Johnson, after he allegedly failed to return nearly $10,000 that was deposited into his bank account by the state of Arizona.

In June 2020, Johnson, who neither lived nor worked in Arizona, reportedly received a deposit of $9,720 into his personal bank account from the Arizona Department of Economic Security, which was intended for another individual through Arizona’s COVID-19 unemployment assistance program.

Instead of returning the money, FINRA claims that Johnson transferred $4,500 to a friend and used the remaining $5,220 for personal expenses.

“Johnson’s bank account statement showed that the funds originated from [the Arizona Department of Economic Security] and were intended for another individual,” FINRA stated in its letter of acceptance, waiver and consent.

FINRA barred Johnson for violating Rule 2010, which requires brokers to “observe high standards of commercial honor and just and equitable principles of trade.”

Johnson entered the securities industry in December 2019 when he became a registered representative with Merrill Lynch. He voluntarily resigned less than a year later after the firm initiated an internal investigation into his alleged “failure to adhere to firm standards relating to personal bank accounts.”

He signed the AWC letter without admitting or denying FINRA’s findings.

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