BOSTON — William Galvin, secretary of the Commonwealth of Massachusetts, has sent subpoenas to seven big banks and investment firms for “targeting the elderly pitching high-risk investments,” reported the Boston Business Journal.
Bank of America Corp.’s Merrill Lynch division, Charles Schwab Corp., Fidelity Investments, Morgan Stanley & Co. LLC, TD Ameritrade Inc. and UBS Financial Services all received subpoenas.
In a statement Galvin referred to alternative investments such as real estate investment trusts, oil and gas partnerships and investments offered through private placement.
Gavin’s office said in a release that his recent investigations into alternative investments have “put him on high alert for abuses by the people who sell them,” said the news source.
“While the products are not unsuitable in and of themselves, they are accidents waiting to happen when they are sold to inexperienced investors by untrained agents who push the products to score the large commissions associated with alternative investments,” Galvin told BBJ.