SEC Puts Schwab On Notice Over Mutual Funds

Law360, New York (October 15, 2009, 1:53 PM EDT) -- Charles Schwab Corp. is facing a possible enforcement action by the U.S. Securities and Exchange Commission over two mutual funds that invested heavily in mortgage-backed securities.

The brokerage said in a regulatory filing Wednesday that it had received a Wells notice alerting it that SEC staff intended to recommend the filing of an enforcement action against three units of the company and the president of the funds for possible securities law violations.

The fixed income funds under investigation by the commission — the Schwab YieldPlus Fund...
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