CHEYENNE, (AP) - The Wyoming Secretary of State's Office has ordered Merrill Lynch to pay a fine for allegedly misleading investors about the auction rate securities market. Secretary of State Max Maxfield said Monday that a multi-state task force negotiated a total settlement of $125 million with Merrill Lynch. Wyoming's portion is $266,255.
Maxfield says Merrill Lynch sold the auction rate securities - a type of bond - to Wyoming investors without full disclosure of the risks involved. The order also requires Merrill Lynch to repurchase auction rate securities from Wyoming clients. Maxfield says Wachovia Securities and Citigroup Global Markets have already settled with the state for auction rate securities violations. He says more settlements are expected.