Auction Rate Securities Fraud Attorney

ARS Investigations Spread to Individuals

The investigation of large and small brokerage firms has been very successful in repaying investors who suffered financial damages after the market crashed back in February, 2008. Billions of dollars in auction rate securities have been repurchased by the brokerage firms responsible for the investor’s financial hardships. While the investigations originally focused on larger brokerage firms, it quickly moved to include smaller firms as well.

Investigating Individuals

Now, the Securities and Exchange Commission has announced that it will include individuals in the pending investigations. The original investigations focused on discovering how large firms had represented the sale of auction rate securities. With billions of dollars in settlements in the works, the Securities and Exchange Commission (SEC) would now like to investigate the individuals involved.

Brokers Beware

SEC representatives note that this new direction for the investigation is meant to send a clear message to other brokers that this type of misconduct and fraud will not be tolerated. The investigation will work to single out brokers who marketed auction rate securities as liquid investments and failed to properly warn investors of the dangers of auction rate securities.

Brokers found to have engaged in improper conduct will be prosecuted for their dishonest and illegal misrepresentation of auction rate securities.

Speak with an Auction Rate Securities Fraud Lawyer

If you’ve suffered financial hardships due to the dishonesty of a broker, contact the auction rate securities fraud lawyers of Williams Kherkher by calling 800.220.9341.