WASHINGTON — Kailua resident Travis A. Branch was among 10 securities brokers charged Thursday by the Securities and Exchange Commission with fraud for allegedly falsely marketing risky complex investments called derivatives as suitable for retirees.

These mortgage-based investments have collapsed worldwide during the last 18 months as the housing bubble burst.

"The brokers enriched themselves with millions of dollars in commissions and salaries while the investors suffered millions of dollars in losses," the SEC alleges.

According to the SEC’s complaint, filed in federal district court in West Palm Beach, Fla.., the 10 brokers worked for Brookstreet Securities Corp., based in Irvine, Calif., which has since gone out of business.

The SEC alleges that the brokers did not clearly define the risks to customers before investing their money in particularly risky instruments known as "collateralized mortgage obligations."

“These brokers disguised the risks of investing in these derivatives of mortgage-backed securities, exposing their customers to substantial losses as the sub-prime crisis emerged,” said Robert Khuzami, director of the SEC’s Division of Enforcement. “They disregarded their customers’ needs and used deceptive and misleading tactics to enrich themselves at their clients’ expense.”