TD Ameritrade Faces Civil Fraud Allegations Over Reserve YieldPlus Fund Losses

Representing Investors Nationwide

Yesterday, the Pennsylvania Securities Commission Filed a civil complaint against TD Ameritrade alleging fraud in the marketing and sale of the firm’s Reserve Yield Plus Fund.

The complaint alleges the firm and fund managers marketed the firm to customers upon the representation it was a money-market fund when in reality, it was “cash enhanced” fund that is riskier and contained assets not normally found in a standard money market fund. The complaint also alleges the firm and its representatives continued to offer the fund to clients after firm management indicated it could go below the $1 price/asset value threshold commonly associated with money market accounts.

At its high point, the TD Ameritrade Reserve Yield Plus fund held approximately $1.2 billion in assets. However, the fund was frozen shortly after another TD Ameritrade Reserve fund (the Reserve Primary Fund) told investors it they were unable to redeem their money. Investors holding these funds experience significant losses as a result.

The attorney at Colling Gilbert Wright & Carter are currently investigating and filing arbitration claims on behalf of investors who lost money as a result of investments in the Reserve Yield Plus Fund or the Reserve Primary Fund. If you have experienced losses in either fund, please contact our offices for a free case evaluation. Thank you.