Securities Fraud and Mismanagement

Attorney and Counselor at Law

303-300-5022 / 844-253-5858 Toll Free

Did the actions/inactions of my broker fall below the required standard of care?

We’ll tell you, for FREE.

Silver Bonds are a type of collateralized mortgage obligation (CMO) sold by BMO Capital Markets. Please contact us if you suffered losses in such investments.

BMO agreed to pay more than $40 million to settle charges by the Securities and Exchange Commission (SEC) concerning these investments. The SEC asserted that BMO misrepresented the Silver Bonds. The time period of the alleged misrepresentation is December 2020 and May 2023, though a larger time period may exist.

Representatives of BMO provided investors with offering sheets that misrepresented, per the SEC, important characteristics of the investment’s underlying collateral. BMO structured the bonds, in a way that caused third-parties to inaccurately portray the investments.

Pools of residential mortgages backed the investments, and BMO structured the bonds using a small sliver of higher-interest mortgages. BMO represented this sliver of mortgages in a way that caused the systems of third-party data providers to generate inaccurate information about the bonds’ overall composition.

In about two and a half years, BMO sold $3 billion worth of these investments. The SEC’s found that BMO’s supervisory policies and procedures did not include guidance concerning the structure and sale of these bonds. BMO also did not have a process for reviewing the type of information firm representatives shared with investors about the investments or a process for reviewing bond structures against marketing communications.

The underlying SEC matter focuses BMO’s failure reasonably to supervise certain BMO agents with a view towards preventing and detecting their violations of the federal securities laws while offering and selling certain Collateralized Mortgage Obligation. The SEC alleges that BMO failed to institute supervisory procedures to prevent its agents from providing misleading information in the sale.

The settlement sought to compensate harmed investors. The SEC is establishing a fair fund to pay some investors.

Jeffrey Pederson represents investors suffering losses from misrepresentations and have over 20 years of experience doing so.

The inappropriate actions of BMO caused investors considerable losses with its Silver Bonds.
BMO is accused by regulators of fraudulently selling Silver Bonds.