Missouri Secretary of State Launches Auction-Rate Securities Investigation
An investigation into the practices used by broker-dealer firms to sell auction-rate securities has been launched by Robin Carnahan, Missouri’s Secretary of State.
The announcement was made late last week after the secretary of state’s office received several complaints from investors who were unable to access their money.
In the past, some broker-dealers have claimed auction-rate securities are as safe as cash. The liquidity of the instruments depended on auctions. However, several auctions recently failed. As a result, investors like William Loehman, 59, are now holding frozen assets.
Loehman’s plight was detailed in the April 13 issue of the St. Louis Post-Dispatch by columnist David Nicklaus. Semi-retired, Loehman wanted a safe, liquid investment for $300,000, money he needed to make the transition into full retirement. He was told auction-rate securities would meet his needs.
But that wasn’t the case. Since the auctions have failed, he can’t gain access to the money he and his wife need to cover their living expenses. He’s worried that because of the auction-rate security mess, his carefully laid retirement plans might be derailed.
If you hold auction-rate securities, contact Carey & Danis.
For more information, fill out our online contact form or call Carey & Danis toll-free at 800-721-2519.
