The City of Williamsburg v. M.G.S.I. Securities This case involved a suitability claim stemming from the sale of high-risk mortgage derivatives and agency structured notes to a municipality. ERS Group prepared an expert report regarding the suitability of the security and the quality of the risk disclosure. The City Colleges of Chicago v. Westcap Securities In a federal bankruptcy court proceeding concerning losses resulting from the sale of derivative securities to the operating funds of Chicago's community college system, ERS Group provided expert testimony on behalf of plaintiffs concerning the mechanics of the securities and their inappropriateness as an investment for the operating fund of a community college. University of Minnesota v. Piper Jaffray In this National Association of Securities Dealers arbitration over alleged misrepresentation of the investment strategy pursued by Piper Jaffray in the management of university funds, ERS Group assessed the interest rate and liquidity risks of the derivatives portfolio strategy and compared these risks to the representations of the fund manager. Mt. Vernon Mortgage Co. v. Bear Stearns & Co. In a National Association of Securities Dealers arbitration centering on the suitability of an interest-only derivative sold to an inexperienced investor with a short-term investment horizon, ERS Group provided expert testimony on the risk of the security and the quality of the broker's disclosure of risk. Community Hospital of Springfield, Ohio v. Kidder Peabody & Company This National Association of Securities Dealers arbitration involved suitability, excessive trading, and markup claims stemming from mortgage derivative security sales to a not-for-profit community hospital. ERS Group provided expert testimony on behalf of claimants on suitability and damages issues. U.S. Securities and Exchange Commission v. Piper Jaffray The U.S. Securities and Exchange Commission Enforcement Division brought this action against Piper Jaffray for the management of the Intermediate Institutional Government Bond Fund, marketed as a low-risk portfolio of AAA-rated securities, that was comprised almost entirely of high-risk derivative securities. ERS Group provided expert testimony on behalf of the SEC that evaluated the interest rate and sector risks of the fund and compared these risks to Piper Jaffray's representations. U.S. Securities and Exchange Commission v. MGSI Securities For this U.S. Securities and Exchange Commission enforcement action against a brokerage firm that sold high risk mortgage derivative securities to a county treasurer seeking a low-risk vehicle in which to invest for a short-term period, ERS Group prepared an expert report that discussed the appropriateness of the securities and the quality of the disclosure of risk. ABF Capital Management v. Askin Capital Management In this investor lawsuit stemming from the failure of purportedly "market-neutral" mortgage derivative hedge funds, ERS Group prepared an expert report and deposition testimony regarding the level of interest rate risk in the funds and the quality of analytics employed by the defendant to monitor and manage risk. American Savings Bank v. UBS PaineWebber An ERS Group expert assisted plaintiffs in a matter involving the sale of "restructured" equity tranches from collateralized loan obligations (CLOs) to a federally regulated bank. Our expert analyzed the structure of the transactions and opined as to whether the restructuring altered the fundamental risk characteristics of the underlying securities.