SAN FRANCISCO (CN) - Charles Schwab & Co. defrauded investors by selling YieldPlus Funds Investor and Select Shares through false and misleading statements that concealed the extent to which they were tied to unwise, illiquid and risky subprime mortgage-backed securities, a class-action complaint claims in Federal Court.
Among the specific complaints is that "the funds relied on the very same broker-dealers, who sold the Funds shares, to package and sell them these highly complex and speculative mortgage back (sic) securities, and at the same time relied upon the credit ratings of rating agencies paid by their broker-dealers, through commissions on the sale of assets to the Funds, to represent to the investing public that these investments meet the stated investment criteria of the Funds."
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.
Additional Reads
-
-
Investors buy the dip, but can’t say bye-bye to inflation February 11, 2022