On November 7, 2013, the SEC filed a complaint against RBS Securities Inc. ("RBS"). The complaint alleged that in 2007, RBS promoted its $2.2 billion offering of a subprime residential mortgage-backed security, and misled investors about the quality and safety of their investments by claiming that the subprime loans backing the multi-billion dollar offering were "generally" in compliance with the lender's underwriting guidelines. However, RBS knew or should have known that almost 30% of the loans backing the offering deviated so much from the lender's underwriting guidelines that they should have been kicked out of the offering entirely. RBS's failure to disclose this information to investors gave a misleading impression of the quality of the loans backing the offering and the likelihood of their repayment. See Complaint.

On November 25, 2013, pursuant to its consent and without admitting or denying the allegations against it, the Court entered a final judgment against RBS. The final judgment permanently enjoined RBS from violating Sections 17(a)(2) and 17(a)(3) of the Securities Act of 1933, and required it to pay a total of $153,754,774.00 in disgorgement, prejudgment interest, and a civil penalty. RBS has paid a total of $153,754,774.00 of disgorgement, prejudgment interest, and penalties (the "Distribution Fund"). See Final Judgment.

On October 16, 2014, the Court appointed Damasco & Associates LLP as the Tax Administrator to fulfill the tax obligations of the Distribution Fund.

On May 21, 2015, the Court created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, for all of the funds received by RBS (the "Fair Fund"), and appointed Garden City Group LLC as the Distribution Agent to oversee the distribution of the Fair Fund to injured investors. See Order to Establish Fair Fund and Appoint a Distribution Agent.

For more information, please contact the Distribution Agent:

Distribution Agent: Garden City Group, LLC, Lorri Staal, Assistant Vice President, Operations
Telephone Number: (631) 470-6876
Distribution Agent's Website: www.gardencitygroup.com
Email: lorri.staal@gardencitygroup.com