DENVER (AP) – Colorado is joining other states in a settlement with E-Trade Securities over the sale of auction rate securities.
Colorado Securities Commissioner Fred Joseph says the company agreed to buy back about $3.5 million worth of securities from Colorado investors who found themselves unable to sell their securities after they had been frozen.
Authorities say the company misrepresented details on the securities to investors, comparing them to money market funds.
E-Trade CEO Steven Freiberg says the company played a limited role in the sale of the securities and the settlement puts an end to the issue.
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