Reserve Mgmt. Lied To Investors After Lehman: Mass.

Law360, New York (January 13, 2009, 12:00 AM EST) -- Massachusetts' securities regulator has slapped Reserve Management Co. Inc. with an administrative complaint alleging that the company's senior management directed sales personnel to give false information to investors to dissuade redemption requests after Lehman Brothers Holdings Inc. filed for bankruptcy.

The complaint was filed Tuesday in Boston by Massachusetts Secretary of the Commonwealth William F. Galvin, against New York-based Reserve Management Co., Reserve Funds Trust, Reserve Partners Inc. and Reserve Management's President Bruce Bent II.

The complaint focuses on the respondents' conduct during the week of...
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