Wachovia’s St. Louis Office Raided
The Missouri Secretary of State’s office announced today that as part of its investigation into the meltdown of the auction-rate securities market, it led a raid on the St. Louis headquarters of Wachovia Securities.
The investigation took place this morning in the building that was formerly the downtown headquarters for A.G. Edwards. In addition to Missouri regulators from Robin Carnahan’s office, the team included investigators from Illinois, Massachusetts, New Jersey and Pennsylvania.
According to a news release, inspectors were looking for information on Wachovia’s sales practices, internal evaluations of the auction-rate securities market and marketing strategies. Subpoenas were also served on more than a dozen Wachovia agents and executives.
Carnahan said in a written statement:
“Hundreds of Missouri investors have called my office because of inability to access their money. They were told these investments were safe and easy to cash in, but now they cannot run their business, make medical payments, or pay school tuition.”
Carnahan's office also noted that the Missouri Securities Division is reviewing the fraud complaint filed about UBS Financial Services by Massachusetts regulators and it is investigating auction-rate securities complaints against Commerce Bank and Stifel, Nicolaus & Company.
Auction-rate securities are municipal or corporate debt securities or preferred stocks that pay interest at rates set through periodic auctions. The instruments typically have long-term maturity dates or no maturity date.
In mid-February, the auctions for the investment instruments failed. That meant investors were unable to sell their securities. To this day, auction-rate securities investors find themselves owning frozen assets.
Carey & Danis has filed class action lawsuits on behalf of persons who purchased auction-rate securities from UBS Financial Services and Wells Fargo & Co.
Auction-rate securities investors who wish to discuss their rights against any broker-dealer may contact Carey & Danis toll-free at 800-721-2519 or fill out our online contact form.
