Fund Bosses Lied To Investors In Lehman Fallout, Jury Told

Law360, New York (October 9, 2012, 9:53 PM EDT) -- The heads of Reserve Management Co. Inc. lied to investors to try save the company's $62.5 billion money market fund in the wake of the Lehman Brothers Holdings Inc. bankruptcy, a U.S. Securities and Exchange Commission attorney told a jury Tuesday.

Bruce Bent Sr. and Bruce Bent II lied when they told investors that they intended to inject money into a Reserve fund to cover an asset shortfall created when the fund's holdings in Lehman lost value, SEC lawyer Nancy Brown told a New York federal...
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