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Prosecutors say a stockbroker lied about his business prowess to trick Merrill Lynch into lending him $780,000 and spent the cash on such luxuries as a Ferrari sportscar.
Steven Mandala pleaded not guilty Tuesday to grand larceny and other charges. Defense lawyer Frank Rothman says the case is a dispute over the timetable for repaying the loan. The firm didn’t immediately return a telephone call.
Manhattan prosecutors say the 29-year-old Mandala concocted phony documents to persuade Merrill Lynch he could bring in business worth more than $1 million a year. The loan was an inducement to join the firm.
Prosecutors say Mandala brought in only a couple of small-player clients before leaving the firm in June after two months.
Merrill Lynch is a unit of Bank of America Corp.
