Wells Fargo Settles With SEC for $11 Million

WASHINGTON (CN) - Wells Fargo Securities will pay $11 million to settle an SEC complaint that its predecessor, Wachovia Capital Markets, cheated investors - including the Zuni Tribe - in securities deals involving collateralized debt obligations.

"Wachovia caused significant losses to the Zuni Indians and other investors by violating basic investor protection rules - don't charge secret excessive markups, and don't use stale prices when telling buyers that assets are priced at fair market value," SEC enforcement director Robert Khuzami said in a statement announcing the settlement.

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