On August 14, 2012, the SEC announced that it "charged Wells Fargo's brokerage firm and a former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors."

On August 14, 2012, the SEC instituted settled administrative and cease-and-desist proceedings against Wells Fargo Brokerage Services LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry. According to the SEC: "From at least January 1, 2007 through August 14, 2007 ('relevant time period'), Wells Fargo and certain of its registered representatives made recommendations to certain institutional customers to purchase asset-backed commercial paper issued by limited purpose companies called Structured Investment Vehicles ('SIVs'), which were complex investment vehicles backed largely by high-risk mortgage-backed securities ('MBS') and collateral debt obligations ('CDOs'). Wells Fargo registered representatives in Wells Fargo's Institutional Brokerage and Sales Division, including McMurtry, recommended and sold these asset-backed commercial paper investments to certain institutional customers, including municipalities and non-profit institutions."

On September 11, 2012, the SEC ordered the appointment of Damasco and Associates, LLP as the Tax Administrator for the Qualified Settlement Fund.

On October 3, 2012, the Commission granted the Division of Enforcement's request for an extension of time until March 18, 2013 for the submission of a proposed Plan of Distribution. According to the SEC: "the Division discussed a potential distribution and determine that it requires additional time to identify eligible claimants, develop a plan methodology, and propose a Plan of Distribution...."

On March 15, 2013, the Commission granted the Division of Enforcement's request for an extension of time until June 18, 2013 for the submission of a proposed Plan of Distribution. According to the SEC: "After further deliberations, the Division has now determined that it requires an additional extension of time to submit a proposed Plan of Distribution."

On July 2, 2013 the SEC approved the Division of Enforcement request for an approval of "Michael J. Liccar and Company LLC as the Fund Administrator" and a "fund administrator bond" that is "equal to size of Fair Fund."

On August 14, 2012 the SEC issued a settled order against Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry. The Order created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002. This "proposed plan of distribution provides for a distribution to certain institutional customers who bought asset backed commercial paper ("ABCP") recommended and sold by [the Defendants]."

On January 17, 2017, "notice [was] give, pursuant to Rule 1103 of the United States Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed Plan of Distribution (the "Plan") for the distribution of monies paid by Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC ("Wells Fargo") and Shawn Patrick McMurtry ("McMurtry") (collectively, the "Respondents")" in relation to the August 14, 2012 settled order against Respondents.

According to the SEC, "[t]he Plan of Distribution (the “Plan”) provides for a distribution to certain institutional customers (“Customers”) who bought asset backed commercial paper (“ABCP”) recommended and sold by Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC (“Wells Fargo”) and Shawn Patrick McMurtry (“McMurtry”)1 (collectively, the “Respondents”) from January 1, 2007 through August 14, 2007 (the “Relevant Period”)." This Plan is in relation to the Fair Fund constituting $6,606,571.96 paid by the Respondents and created by the Order instituted on August 14, 2012.

On March 23, 2017 the SEC instituted an order approving the Proposed Plan of Distribution that was published for notice and opportunity for comment on January 27, 2107. This approved plan is related to an Order submitted on August 14, 2012 against Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry instituting a cease-and-desist order as well as disgorgement, prejudgment interest, and civil money penalties to be paid to a Fair Fund.

On June 30, 2017, the SEC announced a Name Change of Appointed Tax Administrator, and amended the Omnibus Order, beginning June 2017 and for calendar year 2018, to replace all references to Damasco with "Miller Kaplan Arase LLP which acquired Damasco & Associates LLP" in order to reflect Damasco's name change.

The SEC stated: "[I]t is ORDERED that the Commission staff shall direct the payment of $6,604,693.16 from the Fair Fund to the Customer Recipients in accordance with the Plan."

The Commission stated: "The Commission staff has confirmed that the Fund Administrator has completed the distribution process in accordance with the Commission's orders, that all taxes, fees, and expenses have been paid, and that all monies remaining in the Fair Fund have been received by the Commission.8 The final accounting, which was submitted to the Commission for approval . . . and as set forth in the Plan, has been approved."