A Florida-based law team is working to help investors of the failed
According to the legal team Shine and Vernon, Schwab marketed its YieldPlus Fund as a safe and conservative cash alternative, comparing it to the safety of one- and two-year certificates of deposits.
Instead, former manager Kimon Daifotis invested increasing portions of fund assets into asset-backed and mortgage-backed securities.
The bond mutual funds price has dropped by more than 30% in the last year, causing a virtual liquidation of assets a drop of AUM in excess of $13 billion, or 96%. During this period, Schwab encouraged investors to hold on to their YieldPlus shares, the lawyers said.
In one instance, a retired emergency room physician from Hawaii lost more than $150,000 of the $510,000 he invested in his 401(k) through the YieldPlus Fund.
Former
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