The Indiana Children’s Wish Fund has received a settlement of an undisclosed amount related to an investment made by a brokerage firm the Wish Fund said was too risky, according to The New York Times.
In June, The Wish Fund invested nearly $223,000 in a mutual fund recommended by Morgan Keegan. The fund, which had about 17 percent of its assets in mortgage-related securities, lost $48,000 by the time The Wish Fund ordered it be sold three months later.
In November, the Wish Fund filed an arbitration case against the brokerage firm, claiming that the recommendation was not a suitable one and that the broker had breached his duty.
The mortgage market has been in turmoil for the past year, escalating in the fall.