Products April 14, 2011

ProShares Launches Corporate Bond ETFs

ProShares launched exchange-traded funds (ETFs) that provide magnified exposure to high-yield and investment-grade corporate bond markets.
Reported by

ProShares Ultra High Yield (NYSE Arca: UJB) seeks to provide two times the daily performance of the Markit iBoxx $ Liquid High Yield Index, before fees and expenses. ProShares Ultra Investment Grade Corporate (NYSE Arca: IGU) seeks to provide two times the daily performance of the Markit iBoxx $ Liquid Investment Grade Index, before fees and expenses.    

“With today’s launch, knowledgeable investors now have an even larger suite of geared ETFs to help manage their exposures to high yield and investment grade corporate bonds,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC.

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Compliance April 14, 2011

Administrator Busted for Bogus Retirement Plan Scam

A federal court has permanently barred William Alexander from selling or administering pension plans or employee welfare-benefit plans.
Reported by

Through his two companies, Retirement Plan Services Inc. and Lyons Pensions Inc., the Justice Department alleged that Alexander helped small-business owners create bogus pension plans so they could re-characterize their salaries as pension-plan contributions.Alexander then allegedly caused the sham contributions to be refunded to his customers through fake loans from the plans.     

According to the announcement, Alexander advised his customers that they could deduct the purported contributions in order to reduce or eliminate their federal income taxes.  The complaint also said that Alexander fraudulently misrepresented his customers’ non-deductible personal expenses as deductible pension-plan contributions.     

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The government alleged that Alexander’s promotion of these schemes cost the government at least $30 million.  

The court’s order, to which Alexander and his companies consented, also prohibits Alexander from preparing federal tax returns for others for a fee or representing others before the Internal Revenue Service.

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