Andrew Cuomo, attorney general of New York state, today announced that his office is expanding its investigation into the auction rate securities scandal.

Cuomo said his office sent letters to J.P. Morgan Chase, Morgan Stanley and Wachovia announcing that it will look into whether the firms misrepresented auction rate securities to investors as safe, cash-equivalent products, when in fact they faced increasing liquidity risk.

“Today we’re expanding our investigation into the auction rate securities scandal to insure investors across New York State and the nation get their money back,” said Cuomo.

Last week Cuomo’s office secured agreements with UBS and Citigroup that will return over $20 billion to investors. “We believe that when you protect the investor you also increase investor confidence, which helps the entire market,” he said.