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SEC & DOJ Prosecutions

Substantial Settlement Obtained by SEC Provides Relief for Investors in Auction Rate Securities

SEC v. Banc of America Securities LLC and Banc of America Investment Services, Inc.

  • 2009
  • $4.5 Billion

This settlement restored approximately $4.5 billion in liquidity to Defendants’ customers who invested in ARS (auction rate securities) before the market froze in February 2008. Defendants allegedly misled customers with claims that ARS were safe, highly liquid investments comparable to money markets, while knowing of (but not disclosing) an increasing need and diminishing ability to support the market by preventing failed auctions through inventory purchases.

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