According to the SEC's Complaint: "This case concerns violations of the federal securities laws by entities affiliated with The Bear Stearns Companies, LLC (collectively 'Bear'), JP Morgan [J.P. Morgan Securities LLC], and JPMAC [J.P. Morgan Acceptance Corporation I] in connection with billions of dollars of offerings of residential mortgage-backed securities ('RMBS') collateralized largely by sub-prime mortgage loans. The violations resulted from (a) Bear's undisclosed practice, in connection with RMBS offerings, of negotiating cash settlements with mortgage loan originators on loans that violated the representations, warranties, and covenants made to Bear by the originators after the loans were securitized but keeping the consideration received without notifying the trusts that owned the loans and (b) the inclusion of delinquent loans in a December 2006, $1.8 billion RMBS offering that was underwritten by JP Morgan and collateralized by loans that JPMAC had purchased from WMC Mortgage Corporation (or 'WMC')."

On November 16, 2012, the SEC announced that it filed a civil action against J.P. Morgan Securities LLC ("JP Morgan"), EMC Mortgage, LLC, Bear Stearns Asset Backed Securities I, LLC, Structured Asset Mortgage Investments II, Inc., SACO I, Inc., and J.P. Morgan Acceptance Corporation I. The Litigation Release stated: "The SEC alleges that JP Morgan misstated information about the delinquency status of mortgage loans that provided collateral for an RMBS offering in which it was the underwriter. JP Morgan received fees of more than $2.7 million, and investors sustained losses of at least $37 million on undisclosed delinquent loans. JP Morgan also is charged for Bear Stearns' failure to disclose its practice of obtaining and keeping cash settlements from mortgage loan originators on problem loans that Bear Stearns had sold into RMBS trusts. The proceeds from this bulk settlement practice were at least $137.8 million."

On November 16, 2012, J.P. Morgan was charged with misleading investors in offerings of residential mortgage-backed securities (RMBS). The SEC alleges that J.P. Morgan misstated info about the delinquency status of mortgage loans that provided collateral for an RMBS offering in which it was the underwriter. J.P. Morgan is also charged for Bear Stearns' failure to disclose its practice of obtaining and keeping cash settlements form mortgage loan originators on problem loans that Bear Stearns had sold into RMBS trusts. J.P. Morgan settled SEC charges subject to court approval.

The SEC's order to establish a fair fund and to appoint a distribution agent was signed on March 11, 2014.

The Court stated: "The Securities and Exchange Commission having filed a Complaint and Defendants J.P. Morgan Securities LLC, EMC Mortgage, LLC, Bear Stearns Asset Backed Securities I, LLC, Structured Asset Mortgage Investments II, Inc., SACO I, Inc., and J.P. Morgan Acceptance Corporation I (collectively, "Defendants") having entered a general appearance; consented to the Court's jurisdiction over Defendants and the subject matter of this action; consented to entry of this Modified Final Judgment without admitting or denying the allegations of the Complaint (except as to jurisdiction); waived findings of fact and conclusions of law; and waived any right to appeal from this Modified Final Judgment: [...]"

The Court granted the SEC's motion for an order to approve the proposed amended distribution plan, and approved said plan.

The Court stated: "This matter is before the Court on plaintiff's Motion and Memorandum in Support for an Order Authorizing the Disbursement of the JP Morgan Bulk Settlement Practice Fair Fund ("Motion") [DE__]. Having considered the Motion, the Bulk Settlement Practice Distribution Plan approved by this Court on January 25, 2017 ("Plan"), the Declaration of the Distribution Agent, and being otherwise fully advised in the premises, for good cause shown the Motion is GRANTED."

The court ordered that the Fair Fund in the amount of $76,690,313.80 shall be transferred to the Escrow Account established by the Distribution Agent. The Distribution Agent shall disburse the Fair Fund to 12 Eligible Claimants and otherwise Eligible Claimants in accordance with terms of the plan and the motion.