Wachovia Capital Markets LLC and Citigroup Global Markets Inc. will settle allegations by the Michigan Office of Financial and Insurance Regulation that the firms misled investors who bought auction rate securities by paying a combined $880.3 million-$717 million for Citigroup and $159 million for Wachovia-to reimburse clients. The OFIR says…
The Texas State Securities Board has fined Wachovia Securities $4 million for misleading investors about auction-rate securities. The Wells Fargo & Co unit must also have completed buying back ARS from investor clients in Texas by June 30. This is the final step in the auction-rate securities case against Wachovia…
Two Wachovia units have agreed to fines totaling over $4.5 million for violations related to the sales of unit investment trusts and mutual funds. The Financial Industry Regulatory Authority announced the fines last week. By agreeing to settle, Wachovia, which is now owned by Wells Fargo Bank, is not admitting…
Wachovia Securities, LLC and the Securities and Exchange Commission have reached a finalized settlement to resolve charges that the company mislead investors when selling billions of dollars worth of auction-rate securities. Under the terms of the agreement, Wachovia would purchase ARS from non-profit organizations, individuals, and clients with accounts worth…
Carolinas Healthcare System (CHS) is suing Wachovia Corp for alleged bad investments that resulted in losses valued at over $19 million. CHS is also accusing the bank of “directly misleading” it, misrepresenting the risks associated with the investments, and failing to follow the hospital system’s orders that it be withdrawn…
The North American Securities Administrators Association is reminding investors to ask the investment firms that sold them any now-frozen auction-rate securities about repurchase opportunities. Following the ARS market collapse, securities regulators in 12 US states joined together to form a multi-state Task Force dedicated to finding out whether Wall Street…
Prudential Securities has been plagued by claims over its deferred compensation plan, known as MasterShare. A number of former representatives have filed claims and recovered damages. Started in 1999, MasterShare allowed Pru employees to deduct up to 25 percent of their gross pay to purchase discounted shares of a stock…
In St. Louis, Missouri, 10 securities regulators probing the auction-rate securities crisis arrived at Wachovia Securities today. The firm has reportedly failed to fully comply with requests related to the investigation, which is what prompted the onsite visit. The investigators, from Missouri, Massachusetts, New Jersey, Illinois, Pennsylvania, and other US…
In Los Angeles Superior Court, a number of life insurance companies, mutual funds, retirement systems, and other investors are suing Wachovia Securities LLC for alleged fraud related to the sale of senior subordinated notes for beverage maker Le Nature’s Inc. The Pennsylvania-based company filed for bankruptcy in 2006. Causes of…
NYSE Regulation fined 14 of its member firms a total of $10.4 million in fines for failing to deliver trade confirmations to their clients and other violations. Citigroup Global Markets received the heaviest fine of $2.25 million for failing to deliver trade confirmation documents in more than a million consumer…