Ft. Lauderdale , Fl. – A FINRA Arbitrator has awarded compensatory damages, interest, attorney’s fees and costs to a couple who filed an individual claim against Charles Schwab (NASDAQ: SCHW) following YieldPlus Fund investment losses.
The Securities Law Firm of Mark A. Tepper, P.A. filed the claim against Schwab, alleging the discount brokerage firm, “trained its registered representatives to sell YieldPlus, to Claimants and others, as ‘a smart alternative for your cash.'”
“However, unlike cash and money market funds, YieldPlus’ portfolio held large positions in long term securities which exposed the portfolio to substantial market risk,” the claim alleged.
“We’re very pleased with the finding by FINRA’s arbitrator in favor of our clients. Investors who believe they’ve been defrauded should always investigate their legal rights to determine the merits of potential claims,” Tepper said.
The claim alleged that Schwab encouraged retail customers like the Claimants, to hold onto their YieldPlus shares and that, “In contrast, Schwab was liquidating YieldPlus from its other mutual funds, as well as its funds operated for the benefit of Schwab senior management.”
“YieldPlus posted steep losses in 2007-2008, during the financial collapse, because more than half its portfolio holdings were mortgage backed and asset backed securities,” the claim contended.
About Mark A. Tepper, P.A. (www.MarkTepper.com)
Attorney Mark Tepper has earned the reputation of “Investor Advocate” while practicing law for over 30 years and representing the individual investor. FINRA arbitrators recently upheld claims filed by Tepper against a number of large financial services companies, recovering investor losses from Merrill Lynch (MER) for a high risk investment in Fannie Mae Preferred Stock, Charles Schwab (SCHW) YieldPlus, and Wachovia – now Wells Fargo, (WFC). Pending cases include claims against UBS. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory.
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