Massachusetts’ top securities regulator on Thursday filed civil fraud charges against UBS for allegedly selling investments the Swiss bank knew were not safe.
According to a 101-page complaint filed by William Galvin, Massachusetts’ secretary of state, UBS representatives told investors that auction-rate securities – preferred shares in closed-end mutual funds, long-term debt issued by local governments or backed by a pool of student loans – “were safe, liquid ‘cash alternatives’ ”.

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