Friday, April 11, 2008
Low Ball Offers by Schwab Client Advocacy Group
We have spoken to multiple victims of the investment mutual fund fraud perpetrated by Schwab through the YieldPlus Fund Select Shares (SWYSX) and Schwab YieldPlus Funds Investor Shares (SWYPX). Many of these people have dealt with the Schwab "Client Advocacy Group."

The Group has been, according to people we have spoken to, less than helpful and rather defensive with the clients. The Group has gone into cover the firm's rear end mode. The Group has had the nerve to blame the Schwab fund holders for not selling out sooner or not completely reading the prospectus. The reports we have received have also indicated the Group is low balling what Schwab claims are the losses in client accounts.

Other than small, $1,000-$20,000 settlement offers where losses are dramatically bigger, the Group has not offered any real money to those defrauded by the YieldPlus funds.