Distribution Agent Announces Notice for Distribution of the J.P. Morgan RMBS Bulk Settlement Practice Fair Fund

MINNEAPOLIS, July 31, 2017 /PRNewswire/ -- The following is being released by the Distribution Agent for the J.P. Morgan RMBS Bulk Settlement Practice 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 (RLW).

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 Final Judgment was entered in the United States District Court for the District of Columbia on January 7, 2013. The Final Judgment held JP Morgan, EMC, BSABS, SAMI, and SACO jointly and severally liable for a total of $222,415,536 in disgorgement ($137,800,000), prejudgment interest ($24,265,536), and civil penalties ($60,350,000) relating to the bulk settlement practice alleged in the Complaint.

Background
From approximately 2005 to 2007, certain of the Defendants entered into financial settlements with loan originators related to early defaulting loans that Defendants had previously sold to residential mortgage backed securities trusts ("RMBS Trusts"). Defendant EMC, as sponsor, purchased mortgage loans from loan originators and other loan sellers, sold the loans to affiliated depositor entities, Defendants BSABS, SAMI, and SACO, for resale to the RMBS Trusts. Defendants then kept the proceeds of those settlements without notifying or compensating the RMBS Trusts that owned the defaulting loans or passing the proceeds on to the RMBS Trusts ("Bulk Settlement Practice"). Defendants failed to disclose this practice to its RMBS investors. As a result of this conduct, Defendants improperly obtained $137,800,000. The Court ordered Defendants to pay, jointly and severally, a total of $222,415,536.00 in disgorgement, prejudgment interest, and civil money penalties.

If you purchased or otherwise acquired residential mortgage-backed securities ("RMBS") related to RMBS Trusts effected by the Defendants' misrepresentations and omissions in its offering materials regarding the Bulk Settlement Practice from approximately 2005 through 2007 and within 30 days of the issuance of the relevant prospectus supplement for the 156 Trusts, then per the Plan of Distribution for the Bulk Settlement Practice, you may be eligible to share in the distribution of the J.P. Morgan RMBS Bulk Settlement Practice Fair Fund. A complete list of Harmed Trusts including Eligible Certificates (securities) for each Trust and Eligible Purchase Dates can be found as Exhibit A to the Plan of Distribution, which is posted at www.JPMorganRMBSFairFunds.com.

The Plan of Allocation
The J.P. Morgan RMBS Bulk Settlement Practice Fair Fund, together with any interest and income earned thereon, less deductions for taxes ("Net Available Fair Fund"), will be allocated based on the proportion of the value of the loans subject to the Bulk Settlement Practice in each Harmed Trust relative to the total disgorgement paid by Defendants. Exhibit B to the Plan of Distribution, which is available at www.JPMorganRMBSFairFunds.com, shows the percentage of the Net Available Fair Fund allocated to each of the Harmed Trusts.

Preliminary calculations will be made for all Eligible Claimants in each Harmed Trust on a pro rata basis determined by the Eligible Claimant's investment in the Harmed Trust divided by the sum of all Eligible Claimants' investments in the Harmed Trust. After the preliminary calculations have been made, any Eligible Claimant whose preliminary calculation amount is less than $250.00, will be removed from the pool of Eligible Claimants, as set forth in the Distribution Plan.

How to Participate
This notice is a summary only. It is strongly recommended that you read the Plan of Distribution for the J.P. Morgan RMBS Bulk Settlement Practice Fair Fund which includes the Plan of Allocation at paragraphs 56-60, 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 November 28, 2017. If you require additional information or forms, you may obtain them from the Bulk Settlement Practice 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 [email protected].

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

SOURCE J.P. Morgan RMBS Bulk Settlement Practice Fair Fund Distribution Agent

Related Links

http://www.JPMorganRMBSFairFunds.com