Customer of BNY Mellon files complaint with SEC, alleging violations of duties of loyalty owed to its customer receiving BNY financial advisory services

WASHINGTON, June 20, 2019 /PRNewswire/ -- San Miguel Equities, LLC ("San Miguel"), a borrower and customer of the Bank of New York Mellon ("BNY Mellon"), has filed a formal complaint with the U.S. Securities and Exchange Commission ("SEC") for potential violations of the Investment Advisers Act of 1940 ("Advisers Act") and other SEC rules. The complaint is based on BNY Mellon's role as a financial advisor to San Miguel's portfolio of bonds that were used as collateral for a loan made to San Miguel by BNY Mellon. BNY Mellon allegedly breached its duty of care and loyalty while acting as a financial advisor, because of a secret side deal, evidenced by a secret exchange of emails with third parties, for its own benefit and to the prejudice of San Miguel. 

According to San Miguel's SEC complaint, the Advisers Act governs the services BNY Mellon provided to San Miguel. San Miguel's complaint asks for an investigation as well as legal and financial sanctions against BNY Mellon for its alleged breach of duty of care and loyalty owed to San Miguel as a recipient of BNY Mellon's financial advisory services.

"San Miguel is disclosing this complaint to counter BNY Mellon's false or misleading statements about San Miguel's conduct in what we allege is a stretched attempt to defend its secret behavior, which we allege obviously conflicted with its duty of loyalty owed to San Miguel," attorney for San Miguel Lanny J. Davis said. "We believe that severe sanctions should be considered against BNY Mellon. The obvious response to BNY's attempted defense of its conduct: If you did nothing wrong by this secret side deal, then why was it kept secret from the customer it prejudiced?"

In April 2019, San Miguel filed a complaint with the top federal banking regulator, the Office of the Comptroller of the Currency, alleging violations of that office's rules and regulations. Additionally, last December, San Miguel filed a civil action for theft, concealment, and breach of fiduciary duty seeking substantial damages against BNY Mellon in California Superior Court.

Sall Spencer Callas & Krueger, a Laguna Beach, California-based law firm is leading the California litigation for San Miguel. Lanny Davis of Davis Goldberg & Galper PLLC is also counsel of record.

Contact:
Alex Lange
[email protected]
(202) 899-3832 office
(914) 584-5969 cell

SOURCE San Miguel Equities, LLC