kastnna wrote:

- quote -

This is what just happened to me, that's why I was posting. Thanks to
you, Skip, and Mark for the info.

-Will

"kastnna" <kastnna[at]auburnalum.org> wrote in message
news:1188323395.776011.163350[at]50g2000hsm.googlegroups.com...
- quote -

Since you mentioned that, I took a quick look around. Not just a single
mess, but a couple of different ones, with different types of vehicles.

- Mutual fund timing/short term trading (1995-2003) enabled by Waddell &
Reed, KS broker dealer, in Waddell & Reed mutual funds:
http://www.securities.state.ks.us/pr...ned7-24-06.htm
(this is probably the Spitzer reference)
-- $50M to SEC ($40M disgourgement + $10M penalty)
-- $25M reduction in fund fees over five years (Spitzer agreement -
$5M/year)
-- $2M to various states (violating Kansas securities laws) - KS got $145K,
Alaska got $20K, etc.
http://www.securities.state.ks.us/pr...ned7-24-06.htm
(settlement with states)
http://www.dced.state.ak.us/pub/settlement_cases.pdf (Alaska portion)

- Variable annuity switching (national campaign by W&R) 2001-2002:
http://www.finra.org/PressRoom/NewsR...leases/p013886
-- $5M to NASD (fine)
-- $11M to customers (restitution for losses incurred by switches)
-- W&R broker-dealer registration in Missouri suspended
http://www.sos.mo.gov/securities/orders/AP-05-13.asp

W&R's public statement on the fund timing, and changes it has made (I note
that they continue to point out that market timing is not prima facie
illegal, which is true; however the complaint was that they favored certain
customers):
http://www.waddell.com/msd/servlet/c...oadFile?id=219

M* also points out that the mutual fund settlement does not name anyone at
the firm responsible for the timing, nor does it require anyone to leave the
firm. Makes one question how much housecleaning they're really doing.
http://news.morningstar.com/articlen...aspx?id=169527 As of June
20, 2007, M* is also reporting that W&R is the only fund family not to even
have an expected date for a settlement distribution plan proposal.
http://advisor.morningstar.com/artic...sp?docId=13198

Mark Freeland
BnetOnewsX[at]sbcglobal.net

Will,

I know they got into trouble a few years back, but I don't recall why.
I think it had to do with inapporpriate trading. They got hit pretty
hard for it by Spitzer. Since then I think they have turned a 180 and
are super-compliance oriented.

They have been around for a long time but I have never met anyone that
was a client.

On a completely worthless note, they call me once or twice a year
trying to get me to leave my current job, but I have never actually
met or spoken with them.

Kastnna

On Mon, 27 Aug 2007 14:53:37 -0500, Will Trice
<wwtrice[at]paragondynamics.com> wrote:

- quote -

Will they are a retail brokerage firm. I bump into their customers
occasionally and the skill/experience of the individual brokers varies
from person to person (like every other firm).


-HW "Skip" Weldon
Columbia, SC

Anyone familiar with these folks? Are they reputable?

Thanks!
-Will