There are options for clients of Merrill Lynch, Pierce, Fenner & Smith Incorporated broker Rajesh Markan (CRD# 4553309) who suffered investment losses. He was registered with Hilltop Securities Inc. in Dallas, Texas, from 2022 to 2024, and Merrill Lynch, Pierce, Fenner & Smith Incorporated in Flower Mound, Texas, from 2009 to 2022, when he was terminated regarding, “Conduct involving failure to disclose a loan to a client.”
In October 2024, FINRA barred him after he “consented to the sanction and to the entry of findings that he refused to provide documents and information requested by FINRA as a part of its investigation into the circumstances giving rise to a Form U5 filed by his member firm.”
In July 2025, the United States Securities and Exchange Commission (SEC) barred him indefinitely related to his participation in the offering of a penny stock. According to his BrokerCheck profile, he “made false and misleading statements and engaged in a fraudulent scheme to deceive in connection with the offer and sale of securities while working as a registered representative and investment adviser representative of two dually registered broker-dealers and investment advisers.” He allegedly solicited approximately 10 of his brokerage customers to invest, collectively, approximately $2.9 million in a purported private equity fund. However, regrettably for his clients, it is alleged that he “falsely told the investors that a well-known New York private equity firm advised the fund and provided investors a sham prospectus to describe the offering. In reality, the fund did not exist, the fund was not associated with the New York private equity firm, and Markan misappropriated most of the investors’ money.”
In June 2025, the SEC entered a judgment against the broker alleging that he recommended clients invest in a fund called “Intrinsic Value Portfolio” and “circulated a prospectus to describe the offering. Because it was a private equity investment, Markan told investors that their money would be tied up for six to twelve years, but he assured them that, ultimately, they could expect to make above-market returns.” Regrettably for his clients, none of these representations were true as the fund was fake, and he instead misappropriated the investors’ money. He allegedly sent fabricated statements with investors’ account balances, sent from a fake domain and associated email address.
Rajesh Markan Customer Complaints
He has been the subject of nine customer complaints between 2024 and 2025, according to his CRD report:
February 2025. “Clients allege that they were solicited by their Financial Advisor to invest in an outside investment that was fraudulent. They also allege misappropriation of funds.” The customer is seeking $500,000.
November 2024. “Client alleges that she was solicited by her Financial Advisor to invest in an outside investment that was fraudulent. She also alleges misappropriation of funds.” The customer is seeking $300,000 in damages.
November 2024. “Client alleges that he was solicited by his Financial Advisor to invest in an outside investment that was fraudulent. He also alleges misappropriation of funds.” The customer is seeking $500,000 in damages, and the case is currently pending. The complaint was regarding hedge fund losses, and it took place while he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated.
October 2024. “Clients allege that they were solicited by their Financial Advisor to invest in an outside investment that was fraudulent. They also allege misappropriation of funds.” The customer sought $1,000,000 in damages, and the case was settled for $33,119.30. The complaint was regarding hedge fund losses, and it took place while he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated.
September 2024. “Client alleges that she was solicited by her financial advisor to invest in an outside investment that was fraudulent.” The customer is seeking $200,000 in damages, and the case is currently pending. The complaint was regarding hedge fund losses, and it took place while he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated.
September 2024. “Allegations that representative created a bogus hedge fund, bogus prospectuses and other materials to share with Claimants to solicit fraudulent investment.” The customer is seeking $420,000 in damages, and the case is currently pending. The complaint was regarding private equity losses, and it took place while he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated.
August 2024. “Clients allege that they were solicited by their financial advisor to invest in an outside investment that was fraudulent.” The customer is seeking $200,000 in damages, and the case is currently pending. The complaint was regarding hedge fund losses, and it took place while he was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Merrill Lynch, Pierce, Fenner & Smith Incorporated may be liable for investment or other losses suffered by Rajesh Markan’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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