The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by John Marshall Mantel/The New York/Redux

Company Symbol % Change
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No. 2: Charles Schwab Investment Management, Charles Schwab & Co.

<p><strong>Total Settlement:</strong> $118.9 million<br /><strong>Disgorgement:</strong> $61.6 million<br /><strong>Penalty:</strong> $57.3 million

The issue here was a bond fund that fell in value from $13.5 billion to $1.8 billion in eight months. The <a href="http://www.sec.gov/news/press/2011/2011-7.htm">SEC alleged</a> that Schwab misled investors about the risky nature of the fund. The SEC also accused Kimon Daifotis, former chief investment officer for fixed income at Charles Schwab Investment Management, and former Schwab Executive Vice-President Randall Merk with fraud and other securities law violations in the case. Merk paid a civil penalty of $150,000 in November while the case with Daifotis is ongoing. The Justice Dept. has not charged either Merk or Daifotis with criminal violations related to this case.

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