In the Matter of Reserve Management Company, Inc.

Administrative Complaint against Reserve Management by the Mass. Secretary of State


The Enforcement Section of the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth filed this enforcement action against parties affiliated with the Reserve Primary Fund in connection the Fund “breaking the buck”.

The complaint alleges that during the week of Lehman Brothers’ bankruptcy, sales personnel of the Fund made false and misleading statements in an attempt to reassure investors and assuage the onslaught of redemption requests. Simultaneously, the Fund satisfied redemption requests for larger, more favored customers.

The Commonwealth is seeking restitution for affected Massachusetts investors for violation of state securities laws, as well as fines and censures.

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:State, 1st Circuit, Massachusetts | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Doug Cornelius | Attorney Advertising

Written by:


Doug Cornelius on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.