Pennsylvania regulators have filed civil complaints against
Reserve allegedly characterized Reserve Yield Plus as a cash-enhanced product, not the money market fund that TD Ameritrade brokers told investors it was on recorded telephone calls, starting in December 2006. The
Yield Plus, once topping $1.2 billion, now has about $39.7 million remaining to cover legal costs, having distributed about 94.8% of its assets to investors.
In a related suit, Pennsylvania has ordered TD Ameritrade to repurchase $26.5 million in auction-rate securities held by state residents. This suit, announced July 20, says: "The Pennsylvania commission led a 12-state task force of state securities regulators formed through the
PSC Chairman Robert Lam said: ""The Pennsylvania Securities Commission has received many calls from Pennsylvanians and hundreds of calls from investors from around the nation concerning TD Ameritrade. They need their money to make medical payments, run their businesses, or retire as planned. I am pleased that the uncertainty and worry will be over and that these investors will soon get their money back."