NY AG Targets Charles Schwab Over ARS

Law360, New York (July 20, 2009, 2:38 PM EDT) -- New York Attorney General Andrew Cuomo announced Monday his intention to file fraud claims against Charles Schwab & Co. Inc. over allegations that the financial services firm improperly misrepresented to customers the true risks of investing in auction rate securities.

An imminent action letter was sent to the company Friday, Cuomo said, giving the firm five business days to respond to the allegations before taking legal action.

According to the attorney general, an ongoing investigation into the collapse of the ARS market revealed that Schwab brokers...
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