Monday, March 2, 2015

SEC Delays $100M Payment To Credit Suisse Investors


On November 16, 2012 the Securities and Exchange Commission ("SEC") issued a cease and desist order against Credit Suisse Securities, LLC, DLJ Mortgage Capital, Inc., Credit Suisse First Boston Mortgage Acceptance Corp., Credit Suisse First Boston Mortgage Securities Corp., and Asset Backed Securities Corporation. Each entity was accused of providing investors with misleading or false accusations about the risk and reward nature of the mortgages underlying mortgage based securities. As a result, the SEC is collecting over $100+ million in the form of disgorgement, interest, and other associated penalties.

Before harmed investors can gain access to these funds the SEC must first make a Disbursement Plan, however, due to the complexity of the securities in question and the nature of comments received from the public, the SEC is requesting yet another extension order for plan approval. The new deadline is April 17, 2015.

To view the actual extension order click here.

The SEC collected $4.1 billion for investors in 2014. For information on how to find out if the SEC reached a settlement for a company you've invested in, go to www.TheGAFI.com.