Charles Schwab & Co. | Investor's Watchblog

SEC Tags Schwab Officials in Connection with YieldPlus Fund

On January 13, 2011, in Charles Schwab & Co., Firms, SEC, Securities Industry (general), by IW Dog

The next time you hear a big player in the securities industry deny allegations of misconduct and boldly predict success in actions filed by investors, remember that denial is step one in the playbook, regardless of the truth.

For years now, investors have been pursuing claims against Charles Schwab for losses in its fraudulently sold YieldPlus Fund, which Schwab marketed as a money market alternative while it held concentrated positions in mortgage backed securities. Schwab uniformly contested those cases, denying all misconduct. The U.S. Securities and Exchange Commission has now filed an enforcement action against Schwab officials, mirroring the allegations that private investors have made against the fund since 2007. According to the SEC’s press release: (more…)