The Real Deal Miami

Alleged mortgage securities scam nets charge

May 29, 2009 12:22PM

The Boca Raton office of Brookstreet Securities had a staff of brokers who allegedly distorted their sales pitches to rope in small investors on risky mortgage-backed securities. The Securities and Exchange Commission filed suit against the Irvine, Calif.-based company for selling risky collateralized mortgage obligations that those types of investments weren’t suitable for small retail investors. The Boca Raton office was the biggest sales producer, and the federal suit names 10 brokers who worked in Brookstreet offices in Boca Raton, Coral Springs, St. Petersburg, Honolulu, Medford, Ore., and Missoula, Mont.