SEC Sues Stifel Over Sale Of $200M In Risky CDOs

Law360, New York (August 10, 2011, 5:24 PM EDT) -- The U.S. Securities and Exchange Commission sued Stifel Financial Corp. subsidiary Stifel Nicolaus & Co. Inc. in Wisconsin federal court Wednesday over $200 million in risky collateralized debt obligations it sold to five Wisconsin school districts.

Stifel and David Noack, its former senior vice president, told the school districts that the complex securities were as safe as Treasury bonds, when in fact they were risky, performed poorly and ultimately imploded, the SEC alleges.

"The sale of these products to school districts or similar investors must meet...
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