Notice To Customers of Rajesh Markan Who had Their Funds Misappropriated

Rhea-AI Summary

KlaymanToskes, a national investment loss and securities law firm, is investigating barred financial advisor Rajesh Markan from Merrill Lynch (NYSE:BAC) and Hilltop Securities over alleged misappropriation of client funds. Multiple FINRA complaints totaling over $3,000,000 in damages have been filed. The firm has filed several arbitration claims, including one for $1,000,000 on behalf of two investors. Markan allegedly provided falsified investment reports and made false promises about Bain Capital investments. He was permanently barred by FINRA in October 2024 after resigning from Merrill Lynch in 2022 and working at Hilltop Securities until August 2024.

Positive

• None.

Negative

• Multiple FINRA complaints against Merrill Lynch totaling over $3,000,000 in collective investor damages
• Alleged misappropriation of client funds and fraudulent activities by financial advisor
• Lack of supervision by Merrill Lynch and Hilltop Securities
• Potential legal liabilities and reputational damage for Bank of America/Merrill Lynch

Insights

Legal Expert

This case represents a significant legal and financial risk for Bank of America/Merrill Lynch and Hilltop Securities. The $3,000,000 in collective damages claimed, plus potential additional cases, could expand the liability. The allegations of inadequate supervision are particularly concerning, as they could lead to regulatory penalties beyond the individual claims.

The permanent FINRA bar of Markan and multiple pending arbitration claims (24-02147, 24-02148, 24-02289) suggest a pattern of systematic fraud. The alleged scheme involving fake Bain Capital investments and falsified reports indicates a sophisticated deception that went undetected by compliance systems. This raises serious questions about the effectiveness of both firms' supervisory controls.

For shareholders, this presents both reputational and financial risks. While the current claimed damages may be manageable given BAC's size, the potential for additional claims and regulatory scrutiny could amplify the impact. Historical precedent shows that similar supervisory failures have resulted in significant fines and mandatory compliance overhauls.

If Your Funds Were Misappropriated By Financial Advisor Rajesh Markan, Contact the Law Firm of KlaymanToskes

DALLAS, TX / ACCESSWIRE / October 29, 2024 / National investment loss and securities law firm KlaymanToskes is investigating barred financial advisor Rajesh Markan, of Merrill Lynch, a division of Bank of America (NYSE:BAC), and Hilltop Securities (NYSE:HTH), who is facing several pending customer complaints alleging over $3,000,000 in collective investor damages. The law firm is representing numerous customers of Markan and has filed multiple customer complaints with the Financial Industry Regulatory Authority ("FINRA") alleging that Markan misappropriated their monies. The law firm urges all customers of Rajesh Markan to contact the firm immediately at 888-997-9956 if they believe they invested in Bain Capital private equity funds, but have since learned they were not invested in any Bain Capital investments.

KlaymanToskes reports the law firm has filed another FINRA arbitration claim (no. 24-02148) against Merrill Lynch and Hilltop Securities, on the behalf of two investors who have suffered damages of approximately $1,000,000 in connection with being defrauded by their financial advisor Rajesh Markan (CRD# 4553309).

According to the lawsuit filed by KlaymanToskes, Markan engaged in a pattern of deceit, including the misappropriation of the investors' funds and providing falsified investment reports, purportedly showing that investments would substantially appreciate and become liquid on future dates that were fabricated. Additionally, Markan represented that the Bain Capital investment would grow substantially over twelve years, promising that the customers would be able to withdraw their investment thereafter.

KlaymanToskes is currently representing multiple customers of Markan (Claim no. 24-02147, Claim no. 24-02148, Claim no. 24-02289) who are seeking to recover significant investment losses, and who were deprived of potential gains as their funds were never properly invested. The firm's investigation has found that this case may be part of a broader pattern of systemic misconduct by Markan, resulting in substantial financial losses for numerous investors. It is further alleged that lack of supervision by Merrill Lynch and Hilltop Securities facilitated Markan's ongoing fraudulent activities.

Rajesh Markan was registered with Merrill Lynch in Flower Mound, TX from May 2009 until October 2022, when he resigned after allegedly failing to disclose a client loan. Markan then worked at Hilltop Securities in Dallas, TX until August 2024. Markan is facing multiple customer complaints related to allegations of misappropriation and fraudulent activities involving private equity investments and hedge funds. Markan was permanently barred from acting as a broker by FINRA in October 2024 for not cooperating with the regulator's investigation into his misconduct.

Customers of Rajesh Markan who suffered investment losses at Merrill Lynch and/or Hilltop Securities are encouraged to contact attorney Steven D. Toskes at (888) 997-9956 or by email at investigations@klaymantoskes.com in furtherance of our investigation.

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.

Contact:

KlaymanToskes, P.A.
Steven D. Toskes, Esq.
888-997-9956
investigations@klaymantoskes.com
www.klaymantoskes.com

SOURCE: KlaymanToskes

View the original press release on accesswire.com

FAQ

How much in damages is being claimed against Rajesh Markan at Merrill Lynch (BAC)?

Over $3,000,000 in collective investor damages is being claimed through several pending customer complaints against Rajesh Markan at Merrill Lynch.

When was Rajesh Markan barred from acting as a broker at Merrill Lynch (BAC)?

Rajesh Markan was permanently barred by FINRA in October 2024 for not cooperating with the regulator's investigation into his misconduct.

What are the specific allegations against Merrill Lynch's (BAC) former advisor Rajesh Markan?

The allegations include misappropriation of client funds, providing falsified investment reports, and making false promises about Bain Capital investments that were never actually made.

When did Rajesh Markan leave Merrill Lynch (BAC)?

Rajesh Markan resigned from Merrill Lynch in October 2022 after allegedly failing to disclose a client loan.