NAPLES, Fla., Feb. 6, 2009 (GLOBE NEWSWIRE) -- The Shine-Vernon legal team has formed a coast-to-coast alliance with other former Securities and Exchange Commission regulators, former prosecutors and investor advocates to investigate misconduct and seek recovery of losses for purchasers of the Schwab YieldPlus Fund.
Securities fraud litigators in the alliance have now filed claims on behalf of both corporate and individual investor clients in California, New York, Texas, Florida, Missouri, Minnesota, Illinois and Hawaii, and are currently investigating claims on behalf of investors in multiple other states.
The team filed another arbitration claim today on behalf of a California retiree who sustained more than $225,000 in Schwab YieldPlus Fund losses in his retirement savings account. Just prior to investing in the Schwab YieldPlus Fund, the retiree had the bulk of his retirement savings in cash or money market funds. Today's claim follows earlier claims filed by the team on behalf of corporate and small business owners, a retired publisher, a retired accountant, a retired emergency room physician, a retired computer consultant and an 82-year-old widow - among others.
According to the claim, Charles Schwab & Co. marketed its Schwab YieldPlus Fund as a safe "cash alternative" to retirees and others around the country, but that safety was a charade. The Schwab YieldPlus Fund has lost more than 40 percent of its value in the past 18 months because of the concentration of mortgage and asset-backed securities in the fund by former high-profile fund manager Kimon Daifotis.
Charles Schwab issued inaccurate statements or omitted information regarding material facts about the fund's lack of diversification and deceived Schwab YieldPlus Fund investors by concentrating the fund in mortgage and asset-backed securities while it touted the fund's safety on its web site and to financial advisors who recommended the fund, the claim states. Charles Schwab compared the safety of its Schwab YieldPlus Fund to that of one and two-year certificates of deposit.
"People from all walks of life invested in Schwab's YieldPlus Fund, and investors who sought safety in YieldPlus are now paying dearly for Schwab's betrayal," securities attorney Christopher Vernon said. "We believe we've assembled an exceptional group of attorneys to bring claims on behalf of Schwab YieldPlus investors seeking recovery."
For in-depth information about the Schwab YieldPlus Fund, see http://www.protectinginvestors.com/ and http://www.thomasfshinelawblog.com/
The alliance includes:
- Christopher Bebel, a former Securities and Exchange Commission Division of Enforcement attorney, former regulator with the Financial Industry Regulatory Association (aka NASD) and former federal prosecutor, (Texas, 281-348-2572, www.chrisbebel.com);
- Timothy Dennin, a former Securities and Exchange Commission Division of Enforcement attorney and former assistant district attorney, (New York, 212-826-1500, www.denninlaw.com);
- Thomas Mauriello, an investor rights attorney who represents investors throughout the United States, (California, 888-612-1961, www.maurlaw.com);
- Howard Prossnitz, an investor rights attorney who represents investors throughout the United States (Illinois, 312-960-1800, www.prossnitzlaw.com);
- Thomas Shine, a former Securities and Exchange Commission Division of Enforcement attorney (Florida, 321-724-4445, www.thomasfshinelaw.com);
- Christopher Vernon, an investor rights attorney who represents investors throughout the United States (Florida, 239-649-5390, www.vernonhealy.com);
URL: http://www.protectinginvestors.com/2009/02/shinevernon-legal-team-forms-alliance-with-former-sec-regulators-to-investigate-schwab-yieldplus-fun.html
CONTACT: Vernon Healy Attorneys at Law Thomas Shine 321-724-4445; Christopher Vernon 239-649-5390