Legal Team Helps Investors Sue Schwab
Lawyers Claim YieldPlus Fund Committed Gross Misconduct
August 8, 2008
A Florida-based law team is working to help investors of the failed Charles Schwab YieldPlus Fund recuperate some of their losses.
According to the legal team Shine and Vernon, Schwab marketed its YieldPlus Fund as a safe and conservative “cash alternative,” comparing it to the safety of one- and two-year certificates of deposits.
Instead, former manager Kimon Daifotis invested increasing portions of fund assets into asset-backed and mortgage-backed securities.
The bond mutual fund’s price has dropped by more than 30% in the last year, causing a virtual liquidation of assets – a drop of AUM in excess of $13 billion, or 96%. During this period, Schwab encouraged investors to hold on to their YieldPlus shares, the lawyers said.
In one instance, a retired emergency room physician from Hawaii lost more than $150,000 of the $510,000 he invested in his 401(k) through the YieldPlus Fund.
Former Securities and Exchange Commission attorney Thomas Shine, based in Melbourne, Fla., and investor rights attorney Chris Vernon, based in Naples, Fla., are encouraging Schwab investors to contact them regarding arbitration claims against Schwab.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.
For more information on related topics, visit the following:
