The SEC just announced that it has started proceedings against Wells Fargo and its former stockbroker, Patrick McMurtry. Â McMurtry targeted non-profits and charitable institutions, recommending that these institutions investing risky, complex investments despite their conservative investor profile. Â Specifically, the SEC alleges:
From at least January 1, 2007 through August 14, 2007 (“relevant time periodâ€), Wells Fargo and certain of its registered representatives made recommendations to certain institutional customers to purchase asset-backed commercial paper issued by limited purpose companies called Structured Investment Vehicles (“SIVsâ€), which were complex investment vehicles backed largely by high-risk mortgage-backed securities (“MBSâ€) and collateral debt obligations (“CDOsâ€). Wells Fargo registered representatives in Wells Fargo’s Institutional Brokerage and Sales Division, including McMurtry, recommended and sold these asset-backed commercial paper investments to certain institutional customers, including
municipalities and non-profit institutions
If you have lost money in risky investments purchased through Wells Fargo Institutional Brokerage and Sales Division, please call Jeffrey M. Salas at 312.803.4963 for more information, or fill out the contact form below.
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