UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934

Release No. 86727 / August 22, 2019

ADMINISTRATIVE PROCEEDING

File No. 3-15507

____________________________________________

 :

In the Matter of : ORDER DIRECTING 

 : DISBURSEMENT OF FAIR 

JP Morgan Chase & Co., : FUND

 : 

Respondent. :

____________________________________________ :

On December 11, 2014, the Securities and Exchange Commission (“Commission”) 

published a Notice of Proposed Plan of Distribution and Opportunity for Comment (“Notice”)1

pursuant to Rule 1103 of the Commission’s Rules on Fair Fund and Disgorgement Plans 

(“Rules”) for the distribution of the Fair Fund in this administrative proceeding.

2

 The Notice 

advised interested persons that they could obtain a copy of the proposed Plan of Distribution (the 

“Plan”) from the Commission’s public website at http://www.sec.gov/litigation/fairfundlist.htm

or by submitting a written request to Susan S. Pecaro, United States Securities and Exchange 

Commission, 100 F Street, NE, Washington, DC 20549-5631.

The Notice also advised that all persons desiring to comment on the Plan could submit 

their comments, in writing, no later than thirty (30) days from the date of the Notice (1) to the 

Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, NE, 

Washington, DC 20549-1090; (2) by using the Commission’s internet comment form 

(http://www.sec.gov/litigation/admin.shtml); or (3) by sending an e-mail to rule-

 

1

 Exchange Act Rel. No. 73824 (Dec. 11, 2014).

2

 17 C.F.R. § 201.1103.
2

comments@sec.gov. The Commission received no comments on the Plan during the comment 

period. On February 12, 2015, the Commission issued an Order Approving Plan of Distribution

and simultaneously posted the approved Plan.3

The Plan provides for a distribution of a $200,000,000 civil money penalty paid by 

JPMorgan Chase & Co. (“JPMorgan”), plus interest, less any amounts expended on tax 

obligations, to investors, according to the methodology set forth in the Plan (the “Fair Fund”),

who were harmed when JPMorgan made misstatements in its public filings regarding the true 

amount of its losses in the first quarter of 2012 from positions held in the JPMorgan Chief 

Investment Office’s Synthetic Credit Portfolio and the effectiveness of its disclosure controls and 

procedures. 

On August 11, 2017, the Commission issued an order directing the disbursement of 

$200,000,000 from the Fair Fund to Huntington National Bank to be distributed to Eligible 

Claimants4by the Fund Administrator in accordance with the Plan (the “Initial Distribution”).

5

After completion of the Initial Distribution, there is a residual amount of $9,489,297.90

left in the Fair Fund.

6

 The Commission staff seeks to distribute these remaining funds in the Fair 

Fund to Eligible Claimants in accordance with the Plan (the “Re-distribution”). In addition to 

the 6,221 Eligible Claimants that participated in the Initial Distribution, cashed their checks, and 

are eligible to participate in the Re-distribution, this disbursement also includes a second tranche 

of the Initial Distribution (the “Second Tranche”).

7

 The Second Tranche includes: (a) 5,673 

 

3

 Exchange Act Rel. No. 74266 (Feb. 12, 2015).

4

 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.

5

 Exchange Act Rel. No. 81383 (Aug. 11, 2017).

6 Approximately $1,184,858.09 of the Fair Fund is presently held at the Commission. The bulk of the Fair Fund, 

$8,322,689.81 is at Huntington National Bank, the institution to which the monies were transferred to for the Initial 

Distribution. 

7

 Footnote 9 in the Plan provides for a $20.00 de minimis in the Re-distribution of funds, but since the Fund 

Administrator is compensating the Second Tranche investors for both what they were entitled to in the Initial 

Distribution and in the Re-distribution, the Fund Administrator, in consultation with Commission staff, have decided 
3

claims that were denied because the claims were submitted after the claims bar date; (b) 33 

claims that were withheld from the Initial Distribution because certain tax reporting requirements 

needed to be satisfied before being able to receive a distribution; and (c) 185 timely-filed claims, 

where the claimant failed to respond and cure defects in their claims within the allotted 30-day 

response period. These three categories of investors are now deemed Eligible Claimants because 

the Fund Administrator extended the claims bar deadline to January 25, 2018, and posted the 

extension on the website, pursuant to Paragraph 22 of the Plan. These Eligible Claimants will 

receive a Distribution Payment equal to what they would have received in the Initial Distribution 

in addition to any pro-rata share of the Re-distribution they are eligible to receive.

The Fund Administrator has submitted a validated list of payees and payment amounts to 

the Commission staff for the Second Tranche and the Re-distribution, along with a reasonable 

assurances letter as to the completeness and accuracy of the information contained therein. 

The Commission staff has reviewed the validated list of payees and requests that, 

pursuant to Rule 1101(b)(6) of the Commission’s Rules,8the Commission issue an order 

directing the disbursement of $1,166,112.10 from the Fair Funds at the Commission to the Fair 

Fund’s escrow account at Huntington National Bank and directing the Fund Administrator to 

then disburse a total of $9,488,801.91 from the Fair Fund’s escrow account at Huntington 

National Bank for distribution to Eligible Claimants in accordance with the Plan.

Accordingly, it is ORDERED that:

A. The Office of Financial Management shall transfer $1,166,112.10 in remaining 

funds held at the Commission to the Fair Fund’s escrow account at Huntington 

National Bank; and 

 

that the fair and reasonable way to proceed is to use a $10.00 de minimis in the Re-distribution because it would be 

difficult to apply two different de minimis amounts to a single payment. 

8

17 C.F.R. § 201.1106(b) (6).
4

B. The Fund Administrator shall then disburse a total of $9,488,801.91 from the Fair 

Fund’s escrow account at Huntington National Bank for distribution to Eligible 

Claimants in accordance with the Plan.

By the Commission.

Vanessa A. Countryman

Secretary