With the stock market as volatile as it is lately, many investors are wondering if they have any recourse for investments that came highly recommended, yet tanked.
One case in point – The Reserve Yield Plus Fund (RUPQX) sold by TDAmeritrade to clients claiming it was a “money market” fund. That was the presentation at least. Investors who purchased Reserve yield Plus Fund have formed an internet group to share war stories and consider possible litigation. Several arbitration claims are in the works.
Some elderly investors put their entire life savings in the fund because it was supposed to be so safe. Now their money is completely frozen since mid September.
One investor writes that he’s told by mid-October he might be able to receive about one-third of his balance. Others say that Bruce Bent and the Reserve Primary Fund “committed unprecedented fraud” by allowing some institutional investors to skim off some of the fund, sparking a run on money markets.
Don’t expect the Securities and Exchange Commission or the FBI to get involved as protecting Wall Street is job number one. TD Ameritrade is being accused of giving very misleading advice about fixed income investment to too many customers some of whom rely on the funds to live and now find themselves being held hostage.
If you find yourself in the same situation as many investors, Farah and Farah is tracking the situation and will continue to press TDAmeritrade on behalf of investors. Call our Jacksonville offices to discuss your case. Other funds we are watching include:
• Regions Morgan Keegan Advantage Income Fund
• Regions Morgan Keegan Multi-Sector High Income Fund
• Regions Morgan Keegan High Income Fund
• Regions Morgan Keegan Strategic Income Fund
• Charles Schwab Yield Plus Fund
Investors could also have a claim if it was recommended they purchase Lehman Brothers, Washington Mutual, Fannie Mae or Freddie Mac. Call our Jacksonville offices so we can discuss your situation.
