Schwab Yield Plus Investors:
We can help you recover your losses

Two of discount stockbroker Charles Schwab’s mutual funds, that were marketed as conservative investments to millions of investors, are down almost 20% in 2008.

The Schwab YieldPlus Investor Fund (SWYPX) and Schwab YieldPlus Select (SWYSX) are both down approximately 18% year to date. The Schwab California Tax-Free YieldPlus Fund (SWYCX) is down approximately 9% over the same period.

The funds were actively marketed to millions of investors with the objective to "seek high current income with minimal changes in share price." The ultra-short term bond funds were marketed to investors as a higher-yielding alternative to money-market funds, which were solicited as offering a combination of safety and liquidity, or the ability to quickly access cash. The funds were represented as a safe alternative to money market funds that preserve principal while being "designed with your income needs in mind."

On November 15, 2004, Schwab began offering shares of the Funds pursuant to the Registration Statement and Prospectus dated that same day, along with associated sales materials and advertisements, including web pages which also constitute a prospectus under the securities laws. The firm continuously filed nearly identical registration statements and prospectuses and continued to offer and sell the Funds' newly issued securities through notices, circulars, advertisements, letters or communications, written or by radio or television, including over the internet.

These documents included representations that:

1. The Funds provided "higher yields on your, cash with only marginally higher risk, [and therefore] could be a smart alternative."
2. The Funds were "ultra short-term bond fund, designed to offer high current income with minimal changes in share price."
3. The Funds "invests primarily in investment-grade bonds."
4. The Funds offer "the potential for higher yields than a money market fund."
5. The Funds seek "to keep the average duration of its portfolio at one year or less."
6. The Funds were "designed with your income needs in mind."
7. The Funds objective was "to seek high current income with minimal changes in share price."
8. The Funds "invests in a large, well-diversified portfolio of taxable bonds ..."
9. "To minimize changes in share price or NAV, the fund seeks to maintain an average portfolio duration of one-year or less."
10. "The [Funds were being] actively managed by a seasoned team of taxable bond portfolio managers who are supported by a team of credit and market analysts.  The team uses a disciplined approach ... ."

The true material facts, or material facts omitted, necessary to make the statements made not misleading and/or the omitted material facts required to be stated therein, were:

1. the Funds were and are not well-diversified and were concentrated in a single risky industry or market segment - in reality, over 50% of the Funds assets are now invested in the mortgage industry, and that percentage grew as Defendants abandoned the objectives of the Funds in pursuit of higher yields;
2. a material portion of all the bonds were issued by the Fund's top 10 broker dealers, who sold the funds shares;
3. there exists no primary market for most of the bonds, and in fact, the only market was, for many, the issuers themselves;
4. the duration of a vast majority of the bonds is greater than 2 years, with a majority of the bonds not having publicly available durations;
5. the Funds credit and market analysts did not have any real expertise in valuing the mortgage backed securities they purchased, or assessing the risk;
6. the Funds relied blindly on the ratings by agencies who were paid by the Funds' broker-dealers; and
7. the net asset values ("NAVs") of the Funds were highly speculative and inflated.

The November 17, 2007 Prospectus for the Schwab YieldPlus Investor Fund discloses the following:

The Schwab YieldPlus Fund is down 18.5% in the past year, and 15% in the past month alone, putting it at the bottom of its ultra-short bond-fund category. On average, such funds are down only 0.37% in the past year. Schwab cannot claim the market caused the fund meltdown. It was caused by the Schwab fund managers taking a concentrated speculative position in a short term fund that by law needed to be diversified.

We are seeking the recovery of client losses, interest, costs and punitive damages for the victims of
Charles Schwab investment fraud.
We offer a " no recovery no fee"
alternative to costly legal fees.

Please contact us today and learn how we can help.

Richard Sacks