Schwab Units Strike $119M Deal In YieldPlus Case

Law360, New York (January 11, 2011, 6:29 PM EST) -- Charles Schwab & Co. Inc. and Charles Schwab Investment Management on Tuesday agreed to pay nearly $119 million to resolve U.S. Securities and Exchange Commission accusations that they misled investors about risks associated with the YieldPlus Fund.

In a separate complaint Tuesday, the SEC accused former lead YieldPlus portfolio manager Kimon Daifotis and Randall Merk, a Schwab & Co. executive vice president, of fraud and other securities law violations over their handling of the ultra short-term bond fund, which was severely impacted by the decline in...
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