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SEC, FINRA Sue Brookstreet Brokers For Fraud

Law360 (May 28, 2009, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority have accused 16 brokers of a defunct brokerage firm of falsely marketing investments in derivatives of mortgage-backed securities as safe and suitable for retirees and others with conservative investment goals.

In a suit filed Thursday in the U.S. District Court for the Southern District of Florida, the SEC alleges that 10 brokers with Brookstreet Securities Corp. portrayed particularly risky types of collateralized mortgage obligations as secure investments to defraud more than 750 customers, ultimately...
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