The SEC announced on April 5, 2011 that Wells Fargo Securities agreed to a multi-million dollar settlement of charges that one of its units, Wachovia Capital Markets (which is now a part of Wells Fargo), committed securities fraud when it sold the Zuni Indian tribe complex securities known as collateralized debt obligations (CDOs) which are […]
Reverse Convertible Notes Sold By Brokers Under Regulatory Investigation
According to Bloomberg, the SEC is investigating to see if investors were defrauded into buying complex bonds known as reverse convertible notes. Reverse convertibles are securities that promise to pay investors a comparatively high fixed rate of interest and repay the investor’s principal , unless a stock to which the product is linked falls below […]
Auction Rate Securities
Smiley Bishop & Porter LLP has represented clients with significant losses resulting from investments in Auction Rate Securities (ARS). These securities were sold by virtually every major Wall Street firm and were marketed as a highly liquid, safe investment equivalent to CDs or money markets, but with a higher interest rate. In reality, the auction market was […]
