Zuni Pueblo in New Mexico will benefit from a $11 million settlement announced by the Securities and Exchange Commission on Tuesday.

The tribe invested millions in mortgage-backed securities and derivatives. As the housing marking was showing signs of distress, Wachovia Capital Markets charged "excessive markups" in the price without telling the tribe, the SEC said.

"Wachovia caused significant losses to the Zuni Indians and other investors by violating basic investor protection rules – don’t charge secret excessive markups, and don’t use stale prices when telling buyers that assets are priced at fair market value,” Robert Khuzami, the director of the SEC Division of Enforcement, said in a press release.

The amount going back to the tribe was not disclosed.

Get the Story:
Wells Fargo Settles Case Originating At Wachovia (The New York Times 4/6)
Wells to pay $11.2 M in case (The Charlotte Observer 4/6)
Wells Fargo Pays $11 Million to Settle Charges That It Misled Investors (The Blog of Legal Times 4/5)