Former Merrill Lynch and Smith Barney Broker Jane E. O’Brien Indicted on Federal Charges

Jane E. O’Brien, a former registered representative of Merrill Lynch and Smith Barney, was recently indicted on federal counts of mail fraud, wire fraud and investment adviser fraud in connection with her alleged misappropriation of $1.3 million of customer funds.

O’Brien is already serving a 33-month jail term for securities fraud. In May 2013, she was found guilty of defrauding a customer for $240,000 through the sale of a fictitious security.

The new counts relate to O’Brien’s alleged activities between 1995 and 2013.  O’Brien allegedly convinced some clients to withdraw money from bank and brokerage accounts so that she could make investments on their behalf in private placement securities.  O’Brien allegedly utilized the misappropriated funds to pay personal expenses and to make Ponzi payments to other customers.

O’Brien allegedly convinced one victim to make an investment in the film “Crooked Arrows,” but simply misappropriated the funds that were provided to her for the investment.

Blau & Malmfeldt invites Merrill Lynch and Smith Barney customers who were victimized by O’Brien to contact us at 312-443-1600 for a complimentary case evaluation.  Blau & Malmfeldt is a law firm that represents investors across the United States in securities, commodity futures, partnership and shareholder rights disputes.