Filmmaker Sues His Former Stockbroker

Michael Bay, the director of the films “Pearl Harbor” and “Armageddon,” sued a former Merrill Lynch & Co. stockbroker for allegedly losing $3 million of the filmmaker’s money through unauthorized day trading.

Bay’s lawsuit claims the stockbroker, Win H. Troung, conducted more than 8,000 trades over 15 months--or about 25 a day--with the director’s $2.8-million portfolio of stocks, bonds and cash. Troung, formerly of Merrill Lynch’s Beverly Hills office, couldn’t be reached for comment.

The fraud and negligence lawsuit, filed in U.S. District Court in Los Angeles, seeks compensatory damages as well as unspecified punitive damages from Troung. New York-based Merrill Lynch isn’t named as a defendant.

“This case is about a young and inexperienced stockbroker who, entrusted with millions of Bay’s dollars, engaged in extraordinarily reckless trading,” the suit said. “Bay’s entire portfolio was effectively liquidated and rebuilt every day.”

Bay alleges that Troung provided misleading written summaries of trading activities that were intended to conceal losses. The suit claims the broker violated Bay’s requests not to trade on margin--using borrowed money--and to maintain at least $1 million in cash.

The suit claims Bay paid Merrill Lynch commissions and fees of more than $750,000 from October 1999 through January 2001, the time of the alleged misconduct.

Walt Disney Co.’s “Pearl Harbor” was released in May. It cost an estimated $205 million to make and market, to become one of the most expensive movies ever.

Bay, 36, also directed the 1998 film “Armageddon,” which starred Bruce Willis and Ben Affleck. He also directed the 1996 film “The Rock,” starring Nicolas Cage.