MINNEAPOLIS, Jan. 16, 2018 /PRNewswire/ -- The following is being released by the Distribution Agent for the J.P. Morgan RMBS Delinquency Disclosure Fair Fund regarding Securities and Exchange Commission v. J.P. Morgan Securities LLC, EMC Mortgage, LLC, Bear Stearns Asset Backed Securities I, LLC, Structured Asset Mortgage Investments II, Inc., SACO I, Inc., and J.P. Morgan Acceptance Corporation I, Case No. 12-CV-1862 (D.D.C.) (JEB).
In November 2012, the United States Securities and Exchange Commission ("SEC") filed a complaint against J.P. Morgan Securities LLC ("JP Morgan"), EMC Mortgage, LLC ("EMC"), Bear Stearns Asset Backed Securities I, LLC ("BSABS"), Structured Asset Mortgage Investments II, Inc. ("SAMI"), SACO I, Inc. ("SACO"), and J.P. Morgan Acceptance Corporation I ("JPMAC") (collectively, "Defendants") alleging that the Defendants each violated Sections 17(a)(2) and 17(a) (3) of the Securities Act of 1933 [15 U.S.C. § 77q(a)(2) and (3)].
A Modified Final Judgment was entered in the United States District Court for the District of Columbia on April 13, 2017. The Modified Final Judgment held JP Morgan and JPMAC jointly and severally liable for a total of $74,500,000 in disgorgement ($39,900,000), prejudgment interest ($10,600,000), and civil penalties ($24,000,000) relating to the Delinquency Disclosure alleged in the Complaint.
Background
The SEC alleged that the delinquency disclosure conduct involving JP Morgan and JPMAC took place in or about December 2006. JP Morgan and JPMAC structured a transaction in which a trust known as J.P. Morgan Mortgage Acquisition Trust 2006-WMC4 was created and issued residential mortgage-backed securities ("RMBS") that had as collateral more than 9,000 sub-prime mortgage loans that WMC Mortgage Corporation ("WMC") had originated or acquired (the "WMC4 transaction"). JP Morgan and JPMAC offered the RMBS largely through a prospectus supplement filed with the Commission and a private placement memorandum to which the prospectus supplement was attached. In the prospectus supplement, JP Morgan and JPMAC made materially false and misleading statements concerning the amount of, and extent to which, loans were and had been delinquent. As a result of the sale of delinquent loans to J.P. Morgan Mortgage Acquisition Trust 2006-WMC4, investors in the WMC4 transaction suffered substantial losses.
If you purchased or otherwise acquired eligible RMBS in the WMC4 transaction, you may be eligible to share in the distribution of the $74,500,000.00 J.P. Morgan Delinquency Disclosure Fair Fund. A complete list of the Eligible Certificates (securities) and Eligible Purchase Dates for the WMC4 transaction can be found as Exhibit A to the Amended Plan of Distribution, which is posted at www.JPMorganRMBSFairFunds.com.
The Plan of Allocation
The J.P. Morgan RMBS Delinquency Disclosure Fair Fund, together with any interest and income earned thereon, less deductions for taxes ("Net Available Fair Fund"), will be allocated to each Eligible Claimant pro rata based upon the ratio of the Recognized Claim Amount of each Eligible Claimant to the aggregate Recognized Claim Amounts of all Eligible Claimants.
How to Participate
This notice is a summary only. It is strongly recommended that you read the Amended Plan of Distribution for the J.P. Morgan RMBS Delinquency Disclosure Fair Fund which includes the Plan of Allocation at paragraphs 58-63, and other relevant case documents in their entirety for more complete details.
If you believe you are a Potentially Eligible Claimant and would like to participate, you must submit a Proof of Claim Form postmarked no later than May 16, 2018. If you require additional information, documents referred to in this notice, or forms, you may obtain them from the Delinquency Disclosure Fair Fund website at www.JPMorganRMBSFairFunds.com, by calling 1-888-568-7650, or you write to the JP Morgan RMBS Fair Funds, c/o Rust Consulting, Inc., Distribution Agent - 4257, P.O. Box 2599, Faribault, MN 55021-9599, or send an email to info@JPMorganRMBSFairFunds.com.
Special Notice to Brokers and Nominees
Brokerage firms, banks and/or other persons or entities who held Certificates for the benefit of others are asked to view the full Notice at www.JPMorganRMBSFairFunds.com to review additional instructions from the SEC.
Contact: Distribution Agent
1-888-568-7650
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SOURCE J.P. Morgan RMBS Delinquency Disclosure Fair Fund Distribution Agent
