Roe Green Foundation v Charles Schwab - $310,000 (SWYSX) Award
In April 2010, a FINRA arbitration panel in Cleveland, OH ordered Charles Schwab to pay the Claimants $310,000. The award was made after a hearing wherein the Claimants alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimants that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Pomeroy v Charles Schwab - $850,000 (SWYCX) Award
In April 2010, a FINRA arbitration panel in San Francisco, CA ordered Charles Schwab to pay the Claimants $850,000 including $150,000 in attorneys' fees, $14,850 in costs including expert witness fees and interest on the award at the rate of 7%. The award was made after a hearing wherein the Claimants alleged that Schwab misrepresented its California Tax-Free YieldPlus (SWYCX) bond fund as a low risk alternative to money market funds and as being consistent with capital preservation. Dr. Prendergast testified on behalf of the Claimants that the California Tax-Free YieldPlus fund was much riskier than money market funds and that its holdings were inconsistent with those of money market funds. He also testified that the Claimants suffered $604,094 in capital losses.
Mauney v Charles Schwab - $246,560 (SWYSX) Award
In April 2010, a FINRA arbitration panel in Seattle, WA ordered Charles Schwab to pay the Claimant $246,560 including $53,359 in attorneys' fees. The award was made after a hearing wherein the Claimants alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimants that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Rivkin v Charles Schwab - $327,245 (SWYSX) Award
In October 2009, a FINRA arbitration panel in San Diego, CA ordered Charles Schwab to pay the Claimant $327,245. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. Prendergast testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Eliot v Charles Schwab - $96,000 (SWYSX) Award
In September 2009, a FINRA arbitration panel in Los Angeles, CA ordered Charles Schwab to pay the Claimant $96,000 including $16,000 in expert witness fees. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Nasatir v Charles Schwab - $125,729 (SWYSX) Award
In September 2009, a FINRA arbitration panel in Los Angeles, CA ordered Charles Schwab to pay the Claimant $125,729. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Chang v Charles Schwab - $88,245 YieldPlus (SWYSX) Award
In September 2009, a FINRA arbitration panel in Los Angeles, CA ordered Charles Schwab to pay the Claimant $88,245 including $13,500 in expert witness fees. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008. He also testified that the Claimant suffered $74,745 in damages measured against a portfolio of 100% Schwab Money Market Fund.
Kelly v Charles Schwab - $103,000 YieldPlus (SWYSX) Award
In August 2009, a FINRA arbitration panel in Reno, NV ordered Charles Schwab to pay the Claimant $103,000 including interest and fees. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Mayes v Charles Schwab - $116,000 YieldPlus (SWYSX) Award
In August 2009, a FINRA arbitration panel in Houston, TX
ordered Charles Schwab to pay the Claimant $116,000 including
$16,000 in expert witness fees. The award was made after a hearing
wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings.
Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much
riskier than money market funds, that its portfolio was dominated by illiquid
private-label mortgage backed securities containing considerable credit risk
and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
Ross v Charles Schwab - $173,498 YieldPlus (SWYSX) Award
In July 2009, a FINRA arbitration panel in San Diego, CA ordered Charles Schwab to pay the Claimant $173,498 including $16,000 in expert witness fees. The award was made after a hearing wherein the Claimant alleged that Schwab misrepresented its YieldPlus (SWYSX) bond fund as a low risk alternative to a money market fund for cash holdings. Dr. McCann testified on behalf of the Claimant that the YieldPlus fund was much riskier than money market funds, that its portfolio was dominated by illiquid private-label mortgage backed securities containing considerable credit risk and that Schwab apparently overstated the fund's NAV in late 2007 and early 2008.
