Ex-Merrill Broker Denied Early Prison Release

“Although Mr. Buck’s physician, Dr. James Rea, wrote a letter in which he opined that Mr. Buck’s age and ‘chronic history of asthma with some pulmonary issues,’ including suspected bronchitis, ‘place him at greater risk for pulmonary complications if he were to contract COVID19,’ …  Buck has not reported any issues with his asthma during his incarceration,” Sweeney wrote in his decision.

For one thing, Buck was “not using an inhaler,” the judge noted. Buck’s physical exam also “showed nothing remarkable about his respiratory system… and he has no work restrictions,” Sweeney said.

Although Buck also cited “selective Immunoglobulin M deficiency, an immune system disorder, as a risk factor,” the ex-broker “has not established that he still suffers from this deficiency such that it would compromise his immune system if he were to contract COVID-19,” the judge ruled.

In addition, although “eight out of ten COVID-19-related deaths have been in adults 65 years and older,” the judge said, “Buck has been in good health while incarcerated” and his “age is not enough where he does not suffer from other known risk factors.”

Buck previously agreed to pay more than $5 million to settle charges with the Securities and Exchange Commission that he schemed to increase his personal income by overcharging investors.

According to the SEC’s complaint, Buck represented to certain customers with commission-based accounts that the total annual commissions they paid would not exceed certain limits, and then he traded in those accounts and generated commissions that exceeded the amounts he promised. He also intentionally failed to inform the Merrill customers that a fee-based option could be cheaper compared to the total annual commissions being paid based on trades executed in an account, according to the SEC.

As part of the SEC settlement, Buck agreed to pay disgorgement of $2.56 million in ill-gotten gains plus interest of $297,000 and a penalty of $2.23 million.

The SEC barred Buck from acting as a broker or investment advisor or otherwise associating with firms that sell securities or provide investment advice to the public.

The Financial Industry Regulatory Authority also barred Buck from acting as a broker or otherwise associating with a broker-dealer firm, according to FINRA’s BrokerCheck website.