He was once a top-ranked Barron's advisor at Merrill Lynch, leading a team of 13 people and overseeing $1.3 billion in client assets.
On Tuesday, Thomas Buck agreed to plea guilty to one count of securities fraud in federal court and settled SEC charges of misconduct for $5 million, according to court documents.
Buck, 63, had worked at Merrill Lynch in Carmel, Indiana, for more than 30 years before the company terminated him in 2015. During his final three years at the firm, Buck defrauded clients by intentionally overcharging them, exercised discretion in non-discretionary accounts and misled clients about how much they were actually paying in commissions, according to federal prosecutors.
Buck's scheme cost investors more than $2 million, according to criminal charges filed Tuesday in federal court in Indianapolis. He faced a separate civil action brought by the SEC.
“These are not victimless crimes. These are crimes that can wipe out a family’s life savings and leave their financial future in ruins,” said W. Jay Abbott, FBI special agent in charge of the bureau's Indianapolis Division, in a statement.
Buck's actions have also cost Merrill Lynch; more 30 client complaints listed on his
A spokesman for the bank says the company has "resolved issues raised by clients since Mr. Buck's termination in 2015." Merrill Lynch has also "proactively reached out to all clients who may have been affected by his conduct."
Buck's attorney could not be reached for immediate comment.
CEO Ron Kruszewski received praise for leading the firm's wealth management unit to a record for revenue, despite costly legal setbacks.
As Vice President, Underwriting Research and Development, Jackie Waas is involved in investigating and developing underwriting innovations, with an emphasis on concept development, research, presenting new ideas, and participating in concept validation activities.
She started her career with RGA in 2018 as Director of Underwriting Services, where she supported direct-to-consumer accelerated offerings, including assisting with the auditing of the e-underwriting program and helping develop digital health scores while supporting the Digital Health Data team.
Prior to joining RGA, Jackie was an Underwriting Business Consultant and automated underwriting systems subject matter expert with Legal & General America for four years after working in an underwriting capacity with the company for nine years. She also had five years of underwriting experience with AXA Equitable and formerly worked as a marketing manager for Steele Rubber Products.
Jackie received a Bachelor of Arts with a major in communications and a minor in psychology from Lenoir-Rhyne University in North Carolina. She is a Certified Fellow of the Academy of Life Underwriting, a Fellow of the Life Management Institute, and a Fellow of the Financial Services Institute. She is also an Associate, Reinsurance Administration; Associate, Insurance Agency Administration; and an Associate, Insurance Regulatory Compliance. Jackie also holds the Professional, Customer Service Institute designation, and she is a member of the Association of Home Office Underwriters.
Guizhou Hu is Vice President, VP, Head of Risk Analytics at RGA, where he supports global RGA underwriting initiatives and produces internal and external thought leadership pieces based on RGA's in-depth risk analytics. Before joining RGA in 2018, Guizhou served as Vice President, Chief Decision Analytics, for Gen Re and as a Senior Vice President for BioSignia Inc. Guizhou holds a medical degree from Beijing Medical University and a Ph.D. in Philosophy from Cornell University.
In 2013,
A month later,
"We were greatly disappointed to learn of the actions by Tom Buck," an RBC spokeswoman for RBC. "These actions are entirely inconsistent with the representations he made to us during the hiring process."
Most of Buck's 13-member team stayed at Merrill Lynch following his termination. Until just before his departure, the group's client base comprised more than 800 households and 3,000 accounts, representing approximately $1.3 billion, according to SEC charges.
ODD BOOK OF BUSINESS
Buck's book of business was something of an oddity among brokers in the region, per the SEC. At the time, Merrill Lynch was encouraging its brokers to explore fee-based account options with clients.
"During the relevant period, approximately 70% of all revenue from Merrill Lynch’s Indiana-based financial advisors came from clients on a fee-based cost platform. However, during the same period, approximately 80% of the revenue from Buck’s customers came from commissions,"
Buck concealed his actions from Merrill Lynch compliance personnel, misleading them that he had made clients aware of the potentially cheaper pricing structures, authorities said.
He allegedly repeatedly entered false statements into the company's compliance system, stating, for example, in one instance that he had discussed fee-based options with a client when he had not done so.
Authorities did not specify how Buck spent his allegedly ill-gotten commissions.
In his settlement with the SEC, Buck agreed to pay about $2.8 million ill-gotten gains plus a penalty of $2.2 million. The agreement is subject to court approval.
In the criminal case, Buck has not been sentenced. He could face up to 25 years of imprisonment if convicted, according to prosecutors.
“Financial investors have a right to feel secure when entrusting oftentimes the bulk of their life’s savings to a financial advisor that the advisor will do no harm,” U.S. Attorney Josh Minkler said in a statement.
