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.

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Craig J. McCann