Defendant Name:
Mizuho Securities USA Inc.
Defendant Type:
Subsidiary of Public Company
Public Company Parent:
Mizuho Financial Group, Inc
SIC Code:
6021
CUSIP:
60687Y10
Document Reference:
comp-pr2012-139
Document Details
Legal Case Name
SEC v. Mizuho Securities USA Inc.
Document Name
Complaint
Document Date
18-Jul-2012
Document Format
Civil Proceeding
Case Number
12-cv-05550
Federal District Court
New York, Southern District of New York
Federal District Judge
Ronnie Abrams
Allegation Type
Securities Offering
Document Summary
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."
