SEC Dings Schwab Unit With Action Over Naked Short Selling

Law360, New York (April 16, 2012, 6:25 PM EDT) -- The U.S. Securities and Exchange Commission on Monday brought an administrative action against Charles Schwab Corp. subsidiary optionsXpress Inc., accusing the brokerage and four former and current employees of abusive naked short selling.

The SEC said that optionsXpress used sham “reset transactions” to hide a naked short selling scheme involving several customers, including Jonathan I. Feldman, a bank executive who was also targeted in one of two administrative actions the commission filed.

The commission claims that the firm, Feldman and former optionsXpress chief financial officer Thomas...
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