SAN ANTONIO (CN) - Wells Fargo & Co. sold $2 million in auction market preferred shares by fraudulently misrepresenting them as a "bond" that "could be redeemed upon 7 days notice," an investor claims in Federal Court. But when the investor "requested the securities to be redeemed, he was informed that no market existed for these securities and they could not be redeemed," he says.
(Expect more such lawsuits in coming days, as the market for these financial instruments has been effectively frozen by the nationwide financial crisis. The incentive to file such lawsuits should increase as federal tax day approaches, and investors find themselves unable to redeem what until recently were easily traded securities.)
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