Merrill under fire over trader alert
13 April 2012
MERRILL Lynch has been accused of failing to disclose a warning about its former energy trading chief Daniel Gordon ahead of a significant share offer.
Gordon, 27, is under investigation by the US Justice Department for allegedly embezzling £27m from the investment bank. He moved jobs from Merrill to US utility Allegheny when the bank sold its energy business to the company.
A Montana law firm representing Canadian gas company K2 says it wrote to Merrill and Allegheny warning about Gordon in April 2001. Shortly after, Merrill underwrote a £420m share offer by Allegheny. Merrill said the letter was 'immaterial to the offer'.
