The National Association of Securities Dealers charged H&R Block Financial Advisors Inc., the investment arm of the tax prep giant, with fraud in the sale of $16 million worth of Enron Corp. bonds after the energy firm's finances and bond ratings had begun to collapse.
The NASD charged that during the five weeks before Enron filed for bankruptcy, Block's brokers made affirmative misrepresentations to customers, including representations that an investment in the Enron bonds was safe; touted the bonds' supposed benefits; and failed to disclose the risks associated with the bonds.
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