Here is the order, captioned In the Matter of Wells Fargo Securities, f/k/a Wachovia Capital Markets LLC.
An excerpt:
Wachovia sold the securities in February and March 2007 to the Zuni Indian Tribe and an individual investor. Both were customers of a Wachovia Securities registered representative located in El Paso, Texas. The Zuni Indian Tribe and the individual investor paid 90 and 95 as detailed below. Unbeknownst to them, this represented a markup of over 70 percent above the price at which the preferred shares were marked on Wachovia Capital Markets’ books, which was 52.7. By the end of 2007, the RMBS held (or referenced) by Grand Avenue II had been downgraded substantially and the transaction went into default as of February 1, 2008.
Wells Fargo paid penalties exceeding $11 million to the SEC.
Does anyone out there know of any other deals like this?
Turtle Talk 