Noack

Mr. Noack told the SEC that "action against him is not warranted," the filing said.

SEC Broadens Probe Into Stifel Financial Jeannette Neumann 2011

According to their suit, Mr. Noack told school officials that "there would need to be 15 Enrons before you would be impacted" by any losses from the investments.

SEC Broadens Probe Into Stifel Financial Jeannette Neumann 2011

Mr. Noack, who didn't respond to messages, has previously said the SEC's claims against him are "not warranted."

Stifel Is Hit With Complaint Over Sales to School Districts Jeannette Neumann 2011

David W. Noack , the former Stifel investment banker, declined to comment.

SEC Broadens Probe Into Stifel Financial Jeannette Neumann 2011

Mr. Noack sold slices of the bonds to the schools.

SEC Broadens Probe Into Stifel Financial Jeannette Neumann 2011

In the email, Mr. Kruszewski wrote to David W. Noack that "buyers for this product are often hedge funds, banks or insurance companies with billions in fixed-income assets," according to the complaint.

Stifel Is Hit With Complaint Over Sales to School Districts Jeannette Neumann 2011

Mr. Noack is the former Stifel executive accused of fraud in the complaint for his role in selling the investments to the districts.

Stifel Is Hit With Complaint Over Sales to School Districts Jeannette Neumann 2011

Mr. Noack had a limited understanding of the risks of the securities, according to the SEC's complaint.

Stifel Is Hit With Complaint Over Sales to School Districts Jeannette Neumann 2011

In June 2006, shortly before the schools' trusts bought the first CDO, Stifel's head of fixed income sent an email to Mr. Kruszewski: "I do want you to consider the fact that Dave Noack was and to a certain extent, still is relatively ignorant about the nuances of CDOs," according to the complaint.

Stifel Is Hit With Complaint Over Sales to School Districts Jeannette Neumann 2011

A biography on the Milwaukee brokerage firm's website said Mr. Noack "specializes in assisting a variety of debt issuers in obtaining low-cost capital through the utilization of innovative financing techniques."

SEC Broadens Probe Into Stifel Financial Jeannette Neumann 2011