Former Broker Driven To Steal from Merrill Lynch

By Securities Law on May 24, 2010 | In Legal Actions

Steven Mandala pleaded guilty to grand larceny and identity theft in New York State Supreme Court in Manhattan May 19, 2010. The former Merrill Lynch & Co. broker was charged with stealing $780,000 from the firm when he left less than two months after receiving the money in the form of a promissory note.

Mandala was hired by Merrill Lynch in April 2009 and took the $780,000 in the form of a loan to be paid back over eight years while employed at the firm. Upon receiving the money, Mandala deposited it into his father’s bank account and purchased a red 2006 Ferrari F430 Spider in his father’s name, according to prosecutors.

According to Mandala’s attorney, the Ferrari, which cost $245,000, has been sold to help pay restitution. Mandala will be sentenced June 6, and faces a two to six year prison sentence. After his release he will be required to make monthly payments to repay the remaining $378,000.

The identity theft charge stemmed from Mandala’s stealing the identity of his ex-girlfriend’s father to take out a line of credit.

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