A former Merrill Lynch securities broker will spend one year in jail for forging clients' names to access more than $200,000, a 3rd District Court judge decided Monday.
Richard John Byrd, 33, formerly of Salt Lake City, must also repay the company - which covered the investors' losses - $273,000, according to court records.While a stockbroker at Merrill Lynch in Salt Lake City, Byrd forged clients' signatures to authorize transferring their money into accounts he had access to. He then bought cars and a house in southeast Salt Lake City with the money.
Merrill Lynch spokesman Timothy Gilles said Byrd worked for the company for almost five years - from September 1990 through February 1995.
Although many of the transfers happened in 1994, Byrd wasn't arrested until May 5, 1995.
"From the first customer complaint, within hours, we had people in questioning Mr. Byrd. Within a few days, he was terminated and brought to the attention of authorities," Gilles said.
In part, Byrd may have been able to go undetected because customers didn't check their statements and didn't notice the unauthorized transactions, Gilles said.
"It appears that some months went by and customers, for some reason, weren't aware of the problem. It did not come to the attention of anyone in management until some months later," Gilles said, noting that a customer eventually went to someone in a management position over Byrd.
Byrd pleaded guilty Sept. 25 to one count of second-degree felony theft and one count of third-degree felony forgery. Twelve other felony theft and forgery charges against him were dropped as part of a plea bargain.
Merrill Lynch filed a civil suit against Byrd the day after his arrest.
"We intend to pursue (the suit)," Elisabeth Blattner, the attorney representing Merrill Lynch, said Tuesday.
The company is seeking $283,000 plus punitive damages and attorney fees, Blattner said, noting one account was lost and another is much less active as a result of Byrd's actions.
A trial is scheduled for April.
In addition to jail and restitution, 3rd District Court Judge Tyrone E. Medley ordered Byrd to perform 300 hours of community service. He will also be on probation for three years following his jail time.
Medley could have sentenced Byrd to 15 years in the Utah State Prison and fined him up to $15,000.