Defendant Name: Charles Schwab & Co., Inc.

Defendant Type: Subsidiary of Public Company

Document Reference: 2011-7

Document Details

Legal Case Name SEC v. Charles Schwab Investment Management, Inc.; Charles Schwab & Co., Inc; and Schwab Investments
Document Name SEC Charges Schwab Entities and Two Executives With Making Misleading Statements; Schwab Entities to Pay More Than $118 Million to Settle SEC Charges
Document Date 11-Jan-2011
Document Format Civil Proceeding
Case Number 11-cv-00136
Allegation Type Securities Offering
Document Summary On January 11, 2011, the SEC announced that it "charged Charles Schwab Investment Management (CSIM) and Charles Schwab & Co., Inc. (CS&Co.) with making misleading statements regarding the Schwab YieldPlus Fund and failing to establish, maintain and enforce policies and procedures to prevent the misuse of material, nonpublic information. The SEC also charged CSIM and Schwab Investments with deviating from the YieldPlus fund's concentration policy without obtaining the required shareholder approval."

Disgorgement & Penalty Information

Resolutions
None Specified
Fair Funds

Related Documents:

LR-21806 11-Jan-2011 Litigation Release
SEC Charges Schwab Entities With Making Misleading Statements
On January 11, 2011 the SEC announced that it "charged Charles Schwab Investment Management (CSIM) and Charles Schwab & Co., Inc. (CS&Co.) with making misleading statements regarding the Schwab YieldPlus Fund and failing to establish, maintain and enforce policies and procedures to prevent the misuse of material, nonpublic information. The SEC also charged CSIM and Schwab Investments with deviating from the YieldPlus fund's concentration policy without obtaining the required shareholder approval."
comp21806 11-Jan-2011 Complaint
Complaint
According to the SEC: "Between 2005 and mid-2008, Charles Schwab Investment Management, Inc. ('CSIM'), Charles Schwab & Co., Inc. ('CS&Co.'), and Schwab Investments: (1) offered and sold the Fund as a cash alternative without adequately disclosing the differences between the Fund and the cash investments with which it was compared, which mislead investors; (2) deviated from the Fund's concentration policy when it invested more than 25% of the Fund assets in non-agency mortgage-backed securities without obtaining a shareholder vote as required by statute; (3) made inaccurate statements concerning the Fund while its NAV declined; and (4) failed to establish and implement internal controls reasonably designed to prevent the misuse of material, nonpublic information."
court_doc12_11-cv-00136 16-Feb-2011 Court Docket Document
Final Judgment as to Defendants Charles Schwab Investment Management, Charles Schwab & Co., and Schwab Investments
On February 16, 2011, Federal District Judge William Alsup ordered the final judgment in the matter pursuant to the consent of the SEC and the defendants Charles Schwab Investment Management, Charles Schwab & Co., Inc., and Schwab Investments.
court_doc29_11-cv-00136 04-Apr-2011 Court Docket Document
Order Appointing Distribution Agent and Establishing a Fair Fund
court_doc37_11-cv-00136 07-Jun-2011 Court Docket Document
Order Approving Distribution Plan With Modification
court_doc64_11-cv-00136 18-Apr-2013 Court Docket Document
Order Granting Motion for Distribution of Funds
court_doc85_11-cv-00136 23-Jun-2014 Court Docket Document
Order to Distribute Residual Funds to Harmed Investors
court_doc94_11-cv-00136 11-Oct-2016 Court Docket Document
Order Approving the Final Accounting, Transferring Funds to the United States Treasury, Discharging the Distribution Agent, and Terminating the Distribution Fund
court_doc97_11-cv-00136 05-Dec-2016 Court Docket Document
Stipulation and Amended Order Approving the Final Accounting, Transferring Funds to the Securities and Exchange Commission, Discharging the Distribution Agent, and Terminating the Distribution Fund

Related Actions:

In the Matter of Charles Schwab Investment Management; Charles Schwab & Co., Inc; and Schwab Investments
SEC v. Kimon P. Daifotis and Randall Merk
In the Matter Randall Merk
In the Matter of Kimon P. Daifotis