Michigan-based Broker Merid Amde Suspended and Fined $20,000 By FINRA

Allegations include violation of firm policy, unsuitability, excessive trading, unsolicited trade confirmations, among others.

During a 27-year career in the securities industry, Michigan broker Merid Amde has a total of six disclosure events listed on his BrokerCheck record. The most recent disclosure event landed the broker with a 3-month suspension from association with any FINRA member in all capacities and a fine of $20,000.

A closer look at the allegations listed on the most recent settlement agreement indicates the following:

• Amde traded in a client’s accounts without written authorization from the client and without his member firm accepting the accounts as discretionary.

• Amde mismarked the order tickets as unsolicited when they were, in fact, solicited. As a result of mismarking the trade orders as unsolicited, Amde avoided the supervision accorded by the firm to solicited trades.

• Amde provided reports to his client that falsely inflated the value of the client’s holdings.

In addition to the alleged misconduct stated above, additional complaint allegations against the broker include his failure to disclose to his firm that he was serving as successor trustee for an elderly widow’s trust and that he and his wife were named sole beneficiaries.

When Amde met the widow in 1991 she was 74 years old and had no children or living siblings. She had a sixth-grade education and had previously owned a hair salon and been a homemaker. Amde managed her account through the years, and in 2008 transferred the widow’s trust account to his new member firm, Wunderlich. Amde, however, failed to disclose his relationship as a fiduciary on the account with Wunderlich, in direct violation of firm policy. When the widow passed, Amde and his wife challenged the State of Michigan Attorney General’s objection to the closing of the trust due to allegations that the couple had exerted undue influence over the widow and had caused her to disinherit her relatives, friends and charities.

When the case was settled in probate, the relatives and charities received $225,000 and the Amdes received the remainder, approximately $382,000.

Silver Law Group is interested in hearing your experience with Merid Amde, or any financial advisor that may have mishandled your investments. Our attorneys are industry leaders in securities arbitration, representing individual and institutional investors across the United States. Unless there is a recovery, there is no fee. Learn your rights and potentially recover your losses today.