SEC v. Bank of America, N.A., et al.

Case No. 13-cv-00447 (W.D.N.C.)

On August 6, 2013, the SEC filed a complaint against Bank of America, N.A. (“BANA”), Banc of America Mortgage Securities, Inc. (“BOAMS”), and Merrill Lynch, Pierce, Fenner & Smith, Inc. f/k/a Banc of America Securities LLC (“BAS”) (collectively, the “Bank of America Entities” or “Defendants”). The Commission alleged, that from at least November 2007 through at least January 2008, the Bank of America Entities made material misrepresentations and omissions in connection with the sale of residential mortgage-backed securities known as BOAMS 2008-A. The complaint also alleges that the Bank of America Entities failed to disclose known risks associated with the high concentration of wholesale loans in BOAMS 2008-A including higher likelihood that the loans would be subject to material underwriting errors, become severely delinquent, fail early in the life of the loan, or prepay. See Complaint.

The Defendants were ordered to pay a total of $225,060,000.00 in disgorgement, prejudgment interest, and penalties, which would be deemed satisfied in full by the payment of Bank of America Corp. to the United States Department of Justice (“DOJ”) in accordance with the terms of the agreement dated August 20, 2014 among Bank of America Corp., the DOJ, and certain States wherein it was agreed that $135,840,000.00 would be allotted to the SEC for settlement of the claims associated with this matter. See DOJ Agreement. In the final judgments, the SEC was ordered to hold all funds, together with interest and income earned thereon (collectively, the “Fund”), pending further order of the Court. See BANA’s Final Judgment, BOAMS’ Final Judgment, and BAS’s Final Judgment.

The Defendants have paid as ordered, therefore, $135,840,000.00 in the Fund available for the distribution to harmed investors.

On October 22, 2015, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Fund.

On November 18, 2016, the Court appointed Garden City Group LLC as the Distribution Agent to oversee the distribution of the Fund to injured investors.

For more information, please contact the Distribution Agent:

Garden City Group LLC, Susan Mancuso
Telephone Number: 800-231-1815