Reserve Management, Execs Hit With Fraud Suit

Law360, New York (May 5, 2009, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission on Tuesday accused Reserve Management Co. Inc. and its two top executives of issuing false statements prior to the company's main money market fund breaking the buck last fall because of exposure to Lehman Brothers Holdings Inc.

The SEC filed the suit in the U.S. District Court for the Southern District of New York, alleging that Reserve Management, Chairman Bruce Bent Sr. and Vice Chairman Bruce Bent III failed to reveal key material facts to investors, trustees and ratings agencies...
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