Stock exchange disciplines LV man

Wednesday, Feb. 7, 2001 | 11:08 a.m.

A former Merrill Lynch operations manager in Las Vegas who pleaded guilty to stealing $22,431 from its clients' accounts was disciplined by the New York Stock Exchange for failing to comply with a request to provide a written statement and testimony.

The stock exchange temporarily banned Sullivan from being employed with any brokerage that is a member of the exchange, said Ray Pellecchia, an exchange spokesman. He said the ban will become permanent if Sullivan doesn't comply with the exchange's request within six months.

Former Deputy Attorney General Matthew Gabe said Sullivan, on numerous occasions, without authorization from Merrill Lynch, drafted checks from accounts of clients for his personal use. Each time he drafted an unauthorized check, he effected a sale of a security without the knowledge or consent of the account owner.

Gabe said Sullivan, as part of a plea negotiation, made restitution to Merrill Lynch and was sentenced to time served of one day after his arrest on June 19. The company has already reimbursed its clients for their losses.

Sullivan pleaded guilty to the gross misdemeanor of conspiring to transact business as an unlicensed broker-dealer or sales representative. Gabe said Lynch fired Sullivan when the losses were discovered.

Sullivan could not be reached for comment.

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