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Judge: Broker Accused of Burning Merrill Lynch Can Keep Ferrari

021710car.jpg Last April Merrill Lynch hired stock broker Steven Mandala, giving him a $780,000 loan to lure him away from Maxim Group, where he was, they believed, a hot-shot partner who managed $300 million worth of assets. But now the firm says Mandala, 29, ran a savage burn on them, giving them forged pay stubs and tax returns to seem more successful than he was. Then, a week after depositing the loan into his parents' bank account, he bought a red Ferrari for $245,580. And as if the sight of an unscrupulous Wall Street guy throwing money away on a car wasn't shocking enough, Mandala "frequently did not show up at his new job and brought in only two or three clients with assets of about $20,000," says the Manhattan DA.

Mandala also made charges to credit cards he opened up in the name of his ex-girlfriend’s father, according to prosecutors, who indicted him yesterday on felony charges of grand larceny, money laundering, criminal possession of a forged instrument, falsifying business records, and identity theft. Mandala resigned via e-mail at the end of June, and asked Merrill Lynch to throw out his personal effects. It was then that credit cards in his girlfriend's father's name were discovered—the D.A. says he used them to rack up tens of thousands of dollars in debt.

Mandala's lawyer tells the Daily News his client's ex was responsible for the cards, because "she had a bone to pick with her own father." But what about the sports car? Yesterday prosecutors asked a judge to force Mandala to turn over the car as part of his bail, which was set at $500,000. But according to the Times, Justice Daniel FitzGerald decided that the Ferrari "doesn't matter as it relates to bail unless you believe he's going to drive off in the sunset with it."

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Comments [rss]

  • Clarice City

    My IQ dropped 30 points just for looking at that car.

  • Stevennnn

    The haves vs the haves not.

  • Kelles

    ...but he still got a bonus, right?

  • Rocknrope

    The real idiot here is the HR rep responsible for doing his background check.

  • just saying

    True, the HR people could have done a better job in pre-screening.

    However, Mandala certainly would have met with at least some members of Merrill Lynch's top management as part of the interview process. The bigger question is why no warning bells went off in their collective heads. Mandala was not even remotely the hot-shot that he claimed to be. So what does that say about Merrill's management?

  • jt10000

    Can Merrill get a government bailout to cover that? It only seems right given how hard they work.

  • nicemarmot

    Argh!!! My completely appropriate, swear-word-free comment just got held again!

  • hotstepper

    fuckin' shit!

  • Sommelier

    Sounds like I have a better background check run on my prospective employees than these guys do... and they let them handle your money?!?! It's called Due Diligence.

  • Papercutninja

    If he bought the Ferrari California (pictured), then he's a hack and deserves to go to jail.

  • NannyState

    Dude!!

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