Defendant Name:
Wachovia Securities, LLC
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Wells Fargo & Co.
SIC Code:
6021
CUSIP:
94974610
Initial Case Details
Legal Case Name
SEC v. Wachovia Securities, LLC
First Document Date
05-Feb-2009
Initial Filing Format
Civil Proceeding
Case Number
09-cv-00743
Allegation Type
Broker Dealer
Federal District Court
Illinois, Northern District of Illinois
Resolutions
First Resolution Date
05-Feb-2009
Related Documents:
Complaint
In its Complaint, the SEC stated that: "Wachovia misled its customers about the fundamental nature and increasing risks associated with auction rate securities ('ARS') that it underwrote, marketed and sold. Wachovia and A.G. Edwards & Sons, Inc. ('A.G. Edwards'), whose broker-dealer operations were consolidated into Wachovia, misrepresented to its customers that ARS were safe, highly liquid investments comparable to cash or money market instruments. As a result, numerous customers purchased ARS using funds that they needed to remain available on a short-term basis." In particular, the SEC alleged that: "In late 2007 and early 2008, Wachovia became aware of mounting evidence that the firm and its customers could no longer rely on the historical stability of the ARS market. Investor concerns about the creditworthiness of monoline insurance companies (who insured certain ARS), higher than normal ARS inventory levels at A.G. Edwards, and auction failures in certain segments of the ARS market indicated that the risk of auction failures had materially increased. Wachovia's FAs, nevertheless, continued to market ARS to its customers as highly liquid investments."
SEC Finalizes ARS Settlement with Wachovia, Providing Over $7 Billion in Liquidity to Investors
The SEC "announced a settlement
with Wachovia Securities, LLC that will provide more than $7 billion in
liquidity to thousands of customers who invested in auction rate securities (ARS) before the market for those securities collapsed."
2009-17
05-Feb-2009
Press Release--Civil Action
SEC Finalizes ARS Settlement to Provide $7 Billion in Liquidity to Wachovia Investors
The SEC "announced a settlement with Wachovia Securities, LLC
that will provide more than $7 billion in liquidity to thousands of customers
who invested in auction rate securities (ARS) before the market for those securities collapsed."
Judgment
On February 17, 2009, Federal District Judge Virginia M. Kendall entered final judgment against Wachovia Securities, LLC pursuant to the consent of Wachovia Securities, LLC.
SEC Completes Review of Performance by Citigroup, RBC and Wachovia Under Auction Rate Securities Settlements
On June 30, 2010, the SEC published a litigation release regarding this matter. The SEC announced that: "three financial firms that settled the Commission's auction rate securities (ARS) charges against them have satisfied their obligations under their respective settlements and that more than $26 billion has been returned to their ARS customers."
