Defendant Name: Mizuho Securities USA Inc.

Defendant Type: Subsidiary of Public Company
Public Company Parent: Mizuho Financial Group, Inc
SIC Code: 6021
CUSIP: 60687Y10

Initial Case Details

Legal Case Name SEC v. Mizuho Securities USA Inc.
First Document Date 18-Jul-2012
Initial Filing Format Civil Proceeding
Case Number 12-cv-05550
Allegation Type Securities Offering
Federal District Court New York, Southern District of New York

Violations Alleged

Securities Act
Sec 17(a)(2)
Sec 17(a)(3)

Resolutions

First Resolution Date 18-Jul-2012

Related Documents:

2012-139 18-Jul-2012 Press Release--Civil Action
SEC Charges Mizuho Securities USA With Misleading Investors by Obtaining False Credit Ratings for CDO
On July 18, 2012, the SEC issued a Press Release that stated: "The Securities and Exchange Commission today charged the U.S. investment banking subsidiary of Japan-based Mizuho Financial Group and three former employees with misleading investors in a collateralized debt obligation (CDO) by using 'dummy assets' to inflate the deal's credit ratings. The SEC also charged the firm that served as the deal's collateral manager and the person who was its portfolio manager."
comp-pr2012-139 18-Jul-2012 Complaint
Complaint
In the Complaint the SEC stated: "This action arises from the structuring, marketing and rating of a hybrid collateralized debt obligation ('CDO') called Delphinus CDO 2007-1 ('Delphinus'). Delphinus was a mezzanine CDO backed by subprime bonds, which means that the collateral held by Delphinus was largely composed of subprime Residential Mortgage Backed Securities ('RMBS') that were rated slightly higher than junk bonds, and credit default swaps referencing subprime RMBS. Mizuho Securities USA, Inc. ('Mizuho') structured, marketed and obtained ratings for this $1.6 billion CDO in mid-2007, when the housing market and the securities referencing it were showing signs of distress. The marketing materials for Delphinus -- including the Offering Memorandum -- represented that the notes issued by the CDO would obtain certain specific ratings from three credit rating agencies, including Standard & Poor's ('S&P'). Receipt of those ratings was a condition precedent to Delphinus's closing and the sale of the CDO notes. Undisclosed to purchasers of Delphinus notes, however, certain Mizuho's employees provided S&P inaccurate and misleading information. Investors were mislead because notes were issues with ratings obtained by the conduct of Mizuho employees."
LR-22417 19-Jul-2012 Litigation Release
Mizuho to Pay $127.5 Million to Settle SEC Charges of Misleading Investors in CDO
On July 19, 2012, the SEC issued a Litigation Release that stated: "The Securities and Exchange Commission has charged the U.S. investment banking subsidiary of Japan-based Mizuho Financial Group and three former employees with misleading investors in a collateralized debt obligation (CDO) by using 'dummy assets' to inflate the deal's credit ratings. The SEC also charged the firm that served as the deal's collateral manager and the person who was its portfolio manager."
court_doc4_12-cv-05550 26-Jul-2012 Court Docket Document
Final Judgment as to Defendant Mizuho Securities USA Inc.
On July 24, 2012, Federal District Judge Miriam Goldman Cedarbaum entered Final Judgment against Mizuho Securities USA Inc., pursuant to the SEC and Mizuho Securities USA Inc.'s consent.
court_doc19_12-cv-05550 22-Sep-2015 Court Docket Document
Order to Establish a Fair Fund, Approve a Distribution Plan, and Appoint a Plan Administrator
On September 21, 2015, Federal District Judge Loretta A. Preska ordered the establishment of a Fair Fund and approved the Distribution Plan. Judge Preska also ordered the appointment of Nancy Chase Burton, an employee of the SEC, as the Plan Administrator.

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