Summary Distribution Plan Notice of Morgan Stanley Fair Fund Established by the Securities & Exchange Commission ("SEC")

BEAVERTON, Ore., Sept. 7, 2020 /PRNewswire/ --

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION 

In the Matter of

Morgan Stanley and Co. LLC; Morgan Stanley ABS Capital I Inc.; and Morgan Stanley Mortgage Capital Holdings LLC
Administrative Proceeding File No. 3-15982 

SUMMARY DISTRIBUTION PLAN NOTICE OF MORGAN STANLEY FAIR FUND ESTABLISHED BY THE SECURITIES & EXCHANGE COMMISSION ("SEC")

If you purchased Eligible Certificates known as the certificates in the Morgan Stanley ABS Capital I Inc. Trust 2007-NC4 ("NC4") and/or the Morgan Stanley ABS Capital I Inc. Trust 2007-HE7 ("HE7"), made on or before the date of the issuance of the first monthly remittance report issued to investors by the securities administrator for the Trust and not sold within that time-frame, you may be eligible for compensation.  For NC4, the Eligible Purchase Period ends on June 29, 2007.  For HE7, the Eligible Purchase Period ends on October 24, 2007.

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.
YOU MAY BE ELIGIBLE FOR RECOVERY FROM THE MORGAN STANLEY FAIR FUND.
THIS NOTICE CONTAINS IMPORTANT INFORMATION REGARDING YOUR RIGHTS.

What this Case is About

On July 24, 2014 the Commission issued an Order Instituting Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933, Making Findings, and Imposing a Cease-and-Desist Order ("Order") against Morgan Stanley and Co. LLC (f/k/a Morgan Stanley and Co. Incorporated), Morgan Stanley ABS Capital I Inc., and Morgan Stanley Mortgage Capital Holdings LLC (collectively "Morgan Stanley" or "Respondents").  The Order authorized the creation of a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended.

The Commission charged Morgan Stanley and Co. LLC and its affiliates with misleading public disclosures regarding the number of delinquent loans in two subprime residential mortgage-backed securities transactions offered in 2007 – NC4 and HE7 (collectively, the "Trusts"), in violation of Sections 17(a)(2) and (3) of the Securities Action of 1933 ("Securities Act").  As stated in the Order, Morgan Stanley failed to remove or accurately disclose loans with either current and/or historical delinquencies made in each transaction offering documents.

Pursuant to the Order, Respondents paid disgorgement of $160,627,852, prejudgment interest of $17,995,437 and a civil money penalty of $96,376,711, for a total of $275,000,000 to be distributed to harmed investors.  On February 6, 2015, Tax Administrator, Damasco & Associates, LLP, now known as Miller Kaplan Arase, LLP, was appointed to handle the tax obligations of the Fund.  On February 4, 2016, the  Commission entered an Order appointing Garden City Group, LLC ("GCG") now known as Epiq Class Action and Claims Solutions ("Epiq") as the Fund Plan Administrator to assist in developing a Distribution Plan to distribute monies in the Fair Fund to investors harmed by the violations alleged in the Order.  

The SEC approved the Plan in its entirety on June 30, 2020.

Who is Eligible for Compensation

To qualify for a payment from the Fair Fund, you must have purchased Eligible Certificates before the date of the issuance of the first monthly remittance report issued to investors by the securities administrator for the Trust and not sold before June 29, 2007 in the NC4 Trust and not before October 24, 2007 in the HE7 Trust as described in the Plan.  The Plan is available on the Fair Fund's website at www.MSFairFund.com.

Instructions for Submitting a Proof of Claim Form

You must complete and sign the Proof of Claim form and submit it to the Fund Plan Administrator no later than December 12, 2020 at the address or email address listed below in order to be eligible to recover from the Fair Fund:

Morgan Stanley Fund
P.O. Box 9349
Dublin, OH 43017-4249
[email protected]

If you have any questions, or if you would like to receive a Proof of Claim Form in the mail, you may call (855) 907-3235 in the United States, send an email to [email protected], or visit www.MSFairFund.com. 

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SOURCE Epiq

SOURCE Epiq