TCW Lied About MBS Risk Level, Funds' Attorney Says

Law360, New York (August 7, 2013, 3:05 PM EDT) -- TCW Asset Management Co. went beyond mere puffery and actively lied about the quality of mortgage-backed securities in a complex investment, an attorney for a pair of investment funds told a New York state judge during a hearing Wednesday over the $128 million lawsuit.

Two investment funds managed by Basis Capital Funds Management Ltd. have accused TCW, which is part of TCW Group Ltd., of lying about the safety of complex securities Basis bought in 2007 in the equity tranche of a mortgage-backed collateralized debt obligation...
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