In February 2011 Massachusetts securities regulator William Galvin subpoenaed Bank of America in a case involving local investors who lost $150 million in two collateralized loan obligations. Bank
of America bought commercial loans worth $400 million in 2006 and 2007 to be packaged into securities for sale to investors.
The State of Massachusetts wants to see documents related to two CLO’s (collateralized loan obligations) that were structured and sold to investors during 2007 :
- Bryn Mawr CLO II
- LCM VII Ltd.
Galvin wants to determine if the issuer knowingly overvalued the assets in the portfolio to get them off the books by passing them on the unsuspecting investors. In early Feburary 2012, a FINRA panel awarded $1.4 million to a claimant who had invested in Lyon Capital CLO .
Rex Securities Law , located in Boca Raton, FL, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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