On March 13, 2013, the Massachusetts Securities Division fined Deutsche Bank Securities (DBSI) $17.5 million for conflicts in marketing collateralized debt obligations (CDOs). The matter has since been settled in a consent order.
According to the allegations, DBSI, underwrote approximately $32.2 billion of CDOs between 2004 and 2008. Furthermore, DBSI failed to disclose conflicts of interest arising from its various roles in proposing the structure for, co-investing in, and serving as the structurer for a $1.56 billion hybrid CDO.
Specifically, DBSI did not disclose that a proprietary trading group within the firm partnered with a hedge fund to determine how the CDO would be structured and marketed.
The Doss Firm, LLC represents investors nationwide who have lost money as a result of investment fraud or due to faulty investment advice. If you believe that you may be a victim of investment fraud and would like to speak with us, please call our firm for a free consultation.
Jason Doss is the owner of The Doss Firm, LLC, an Atlanta-based law firm devoted to representing consumers across the country in a variety of areas including investment disputes and consumer class action litigation. Mr. Doss earned his J.D. from Florida State University in 2002 and his B.A. from the University of Florida in 1997.