SEC v. Mizuho Securities USA Inc.
Case No. 12–cv-5550 (S.D.N.Y.)
On July 18, 2012, the Commission filed a complaint against Mizuho Securities USA Inc. (the “Defendant”). The complaint alleged that, from mid-2007 through Jaunary 2008, the Defendant violated federal securities laws by misleading investors in a collateralized debt obligation (CDO) by using dummy assets to inflate the deal’s credit ratings. See Complaint.
The Defendant was ordered, and has paid, a total of $127,517,330.00 in disgorgement, prejudgment interest, and civil penalty. The Commission was ordered to hold all funds, together with interest and income earned thereon, pending further order of the Court. See Defendant’s Final Judgment.
On September 21, 2015, the Court entered an order that established a Fair Fund for the monies paid by the Defendant and appointed Nancy Chase Burton, as the Distribution Agent to oversee the administration and distribution of the Fair Fund. The order also approved the Distribution Plan that provided for the Distribution Agent to disburse $10,799,041.00 to the investor harmed by the Defendant’s conduct. See the Court’s Order and the Distribution Plan.
On November 13, 2017, the Court entered an order approving the disbursement of $3,399,837.00 to an additional investor, not previously identified in the Distribution Plan. The Court also ordered for the Distribution Agent to take the steps outlined in the Distribution Plan to terminate the Fair Fund, discharge the Distribution Agent, and transfer any remaining funds to the United States Treasury. See the Court’s Order.
For more information, please contact the Distribution Agent:
Nancy Chase Burton
Office of Distributions
Telephone Number: 202-551-4425