Corporate & Securities Law

TD Ameritrade recently agreed to $10 million to settle SEC charges that it failed to supervise its registered representatives, some of whom mislead customers when selling shares of the Reserve Yield Plus Fund, a mutual fund that fell below a net asset value of $1.00 in September 2008, after the Federal Reserve wrote down the fund investments in commercial paper issued by Lehman Brothers Holdings, Inc.

The SEC alleged that TD Ameritrade?s representatives offered and sold the fund to its customers, mischaracterizing the mutual fund as a money market fund that was equivalent to cash, and an investment that had guaranteed liquidity.  The SEC alleged that TD Ameritrade failed to establish adequate supervisory policies and procedures with respect to the sales of this fund.

The SEC found that thousands of TD Ameritrade customers continue to hold a majority of the funds shares, and have received only 95% of their original principal investment in the fund.  However, the $10 million settlement only represents $0.012 per share of the fund that will be distributed back to eligible customers. 

As a result, those who have suffered significant losses in the Reserve Yield Plus Fund through TD Ameritrade may want to consider securities arbitration as a means of recovery outside of this SEC settlement.

Eccleston Law represents individual and institutional investors to recover their investment losses caused by securities and investment fraud. Our attorneys also help victims of Ponzi schemes pursue recovery by submitting claims with receiverships established by the SEC or by assisting victims with the filing of a Theft Loss Tax Deduction with the IRS.

If you suffered significant losses investing the Reserve Yield Plus Fund through TD Ameritrade, your losses may be recoverable through securities arbitration.  Please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000 for more details.