The United States Financial Industry Regulatory Authority (FINRA) has barred former Merrill Lynch general securities representative Michael Nagy from associating with any FINRA member in all capacities.

Nagy entered the securities industry in July 2017 when he associated with Merrill Lynch, Price, Fenner & Smith, Inc, a FINRA member. He registered as a general securities representative and also became employed by the firm’s bank affiliate later that year. He remained associated with the firm until his discharge. On December 20, 2019, Merrill Lynch filed a Uniform Termination Notice for Securities Industry Registration (Form U5) explaining that Nagy had been discharged for “conduct involving accepting funds left at an ATM by a customer and not being forthcoming during the Firm’s investigation of the matter.”

Although Nagy is not currently registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction pursuant to Article V, Section 4 of FINRA’s By-Laws.

FINRA explains that conversion is an intentional and unauthorized taking of and/or exercise of ownership over property by one who neither owns the property nor is entitled to possess it. Conversion violates FINRA Rule 2010.

In November 2019, Nagy worked at a branch of a Merrill Lynch affiliated bank. On November 8, while on his lunch break, a customer gave Nagy at least $100 in cash that a previous customer using the bank’s drive-up ATM had left behind, and asked Nagy to track down the previous customer and return the funds. After returning to the bank following his lunch break, the bank manager asked Nagy about the cash left behind in the ATM but Nagy disclaimed any knowledge of the missing funds.

The following week, Nagy found the cash in his suit jacket pocket and decided to keep the cash indefinitely rather than report it at that time.

Therefore, Nagy violated FINRA Rule 2010.