Charles Schwab’s embattled bond funds, Schwab Yield Plus Fund Select Shares (SWYSX) and Schwab Yield Plus Investor Shares (SWYPX) continue to lose money for the San Francisco-based independent broker-dealer. Investors were misled into the idea that these investments were conservative and similar in risk and interest appreciation to money markets. The reality was much different, and investors suffered huge financial losses because of misrepresentations and mismanagement by Charles Schwab.
Though the situation is regrettable, thousands of investors are seeking redress through the Financial Industry Regulatory Authority (FINRA). Through FINRA arbitration, many have been successful in their pursuit against Charles Schwab. Below is a list of recent cases (within the last two months) tried by Aidikoff, Uhl, & Bakhtiari that illustrates this fact.
Eliot – 9/25/2009, Claimant was awarded $80,000 in compensatory damages and an additional $16,000 in expert witness fees. The panel also assessed the entire cost of the arbitration proceeding against Charles Schwab.
Nasatir – 9/25/2009, Claimant was awarded $125,729 in compensatory damages. FINRA also assessed arbitration costs of $3,375 against Charles Schwab.
Chang – 9/11/2009, Claimant was awarded 100% of market adjusted damages of $74,745 and $13,500 for expert witness fees. FINRA also assessed the entire cost of the arbitration proceeding, $3,750, against Charles Schwab.
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