While defending itself against an investor lawsuit over the YieldPlus fund, Charles Schwab has also been fighting to prevent an attack from another party: the SEC. Fundsters interested in the details of the YieldPlus saga may want to take a look at Karen Gullo and David Scheer's article today in Bloomberg/BusinessWeek.

The tale of YieldPlus' woes begins in 2006, when the fund began investing heavily in mortgage-backed securities. (Between January 1 and March 28, 2008, the fund lost 16.8 percent of its value.) Both the suing investors and the SEC have attacked Schwab for making that shift without holding a shareholder vote. The SEC first sent Schwab a Wells notice about the investigation in October 2009. 

Edited by: Neil Anderson, Managing Editor


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