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Schwab YieldPlus Fund Arbitration Award Issued

Charles Schwab & Company has been hit with yet another arbitration award connected to its Schwab YieldPlus Fund. On May 29, 2009, a FINRA arbitration panel in Minneapolis, Minnesota, awarded more than $14,500 plus interest to Gary Wilhelm on claims of negligence and misrepresentation on the part of the San Francisco-based investor firm and the sale of the Schwab YieldPlus Fund. 

According to the award (FINRA # 08-02118), Wilhelm invested a portion of his retirement IRA in the Schwab YieldPlus Fund based on recommendations by Charles Schwab that it was a “safer alternative to money market funds but with higher yields.” Despite assurances from Charles Schwab that the YieldPlus fund was low risk, it actually contained a high concentration of mortgage-backed securities. Following the onset of the mortgage loan crisis in 2007, the Schwab YieldPlus Fund plummeted in value and produced millions of dollars in losses for investors.

2 thoughts on “Schwab YieldPlus Fund Arbitration Award Issued”

  1. stephen Says:

    Dear Sir or Madam:

    Greetings. Found your site on the web.

    I have lost some $40,000 in principal on Schwab’s Yield Plus Select, after being advised that it was the safest thing after a money market fund. (After learning my lesson in 2000-2001, I returned to being a very conservative investor. At present, essentially all of my savings are in money markets and CDs.) Might this be of interest to you?

    For the record, last year I went through a FINRA arbitration, and won. So I’m aquainted with the process and not at all intimidated by it.

    I currently reside in Holland (Amsterdam), but my Schwab account was begun in NY and later moved to a post office box in New Jersey. I return regularly to the US.

    Thanks for your time and attention,

  2. Mary Says:

    I always was concerned in this subject and stock still am, thank you for putting this up.

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