SAN FRANCISCO (KGO) — Charles Schwab announced it will pay $200 million to settle a class-action lawsuit that claimed investors were misled about the safety of mortgage-backed securities.
This class-action lawsuit and the arbitration centers on Charles Schwab’s YieldPlus Bond Fund, which rapidly lost value in back in 2008 as the mortgage market melted down.
Tissa Hami is one of the few female Iranian comedians working. She has appeared on “The View.” She is funny, but more than that, she is determined.
“I am thrilled that I won,” said Tissa.
Tissa, with the help of the University of San Francisco Law Clinic, took on the brokerage Charles Schwab. She had her money in cash, but moved it at the urging of a Schwab financial consultant. She put $50,000 into an account and lost more than more than $13,000 in less than a year, most of it when she was out of the country at a funeral.
“I couldn’t believe it, I thought it might be a typo,” said Tissa.
She wanted her money safe, says she made that clear to Schwab, and was told this was a conservative investment.
“He told me about this investment, about Schwab YieldPlus, that he told me it was like cash, similar to a money market, that it was low risk, conservative,” said Tissa.
“What the fund was really investing in was not safe, long-term investments, so it was very clear misrepresentation,” said May Chang.