Albuquerque Journal (Albuquerque, NM)

Case Against Brokerage House Sent to Federal Court.

Byline: Carolyn Appelman Journal Staff Writer

Another of Sandoval County's lawsuits against a brokerage house over its portfolio losses has been moved from state District Court to federal court.

The lawsuit, filed Oct. 6 in 13th Judicial District Court in Bernalillo, alleges broker Royce O. Simpson and Everen Securities of Houston violated state and federal securities laws because they should have known that zero coupon stripped bonds were not suitable investments for the county. The bonds, which pay no interest, have to be held for up to 25 years to recover their principal, the lawsuit says.

It also alleges unfair trade practices and says Everen should have supervised Simpson more closely because of his prior investment problems in California. …

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