NEW YORK, July 15, 2008 (PRIME NEWSWIRE) -- The law firms of Avelino & Associates, P.C. (http://www.avelinolaw.com) and Napoli Bern Ripka, LLP, announced today that a claim was filed with FINRA (Financial Industry Regulatory Authority) arbitration against Charles Schwab & Co. The claim was filed on behalf of an investor who seeks damages for losses sustained in the Schwab YieldPlus Select Fund (SWYSX).
The FINRA Statement of Claim alleges damages for breach of fiduciary duty, breach of contract, unsuitability, over-concentration and misrepresentations and omissions relating to the firm's failure to properly disclose the risks associated with the YieldPlus Select Fund.
The Statement of Claim alleges that Charles Schwab represented that the YieldPlus Select Funds (SWYSX) and the YieldPlus Fund Investor Funds (SWYPX) were safe alternatives to money market funds that emphasized preservation of capital and income production. Charles Schwab also represented that its YieldPlus funds were designed to provide "high current income with minimal changes in share price" and that this objective would be accomplished by investing in a "well-diversified" portfolio of bonds.
According to Vincent J. Imbesi, a partner at Avelino & Associates, P.C., "Representatives employed by Charles Schwab marketed the funds to investors as an alternative to money market funds. Investors, including the client we are representing in the subject arbitration, relied on Charles Schwab's representations when they purchased the SWYSX and the SWYPX funds, to their detriment."
Investors who purchased the Charles Schwab YieldPlus can get more information by visiting http://www.avelinolaw.com. Investors can obtain a free legal consultation by contacting Vincent J. Imbesi at 1- (866) 732-2775.
Combined, the law firms of Avelino & Associates and Napoli Bern Ripka, have obtained over 1 billion dollars for its clients. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.