Related Documents:
2011-7
11-Jan-2011
Press Release--Civil Action
SEC Charges Schwab Entities and Two Executives With Making Misleading Statements; Schwab Entities to Pay More Than $118 Million to Settle SEC Charges
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."
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."
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_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
