INDIANAPOLIS (March 1, 2016) – Indiana Secretary of State Connie Lawson announced today that the office has reached a $905,000 settlement with JPMorgan regarding the sale of residential-mortgage backed securities (RMBS). The settlement is the result of an investigation by the Secretary of State’s office into JPMorgan’s role in the creation and sale of RMBS in Indiana. The office alleges JPMorgan did not disclose critical information regarding the underlying collateral loans to investors who purchased particular securities.
“Investors have the right to know all the facts and to receive complete information when deciding to invest,” said Secretary Lawson. “This right extends whether a casual Hoosier investor or an institutional investor.”
Under the terms of the agreement, New York based JPMorgan agreed to remediate all losses for a 2006 investment made by the Indiana State Teachers’ Retirement Fund. The agreement also requires JPMorgan to pay penalties and costs of $520,000 and to send $250,000 to the Investor Protection Trust on Indiana’s behalf. The office uses funds from the Investor Protection Trust to further its dual mission of promoting financial literacy and fraud prevention in Indiana.
“We are pleased to be able to return money to the Indiana State Teachers’ Retirement Fund,” said Securities Commissioner Alex Glass. “Our number one goal is to make victims whole whenever possible.”
For information on the agency’s efforts to promote financial literacy and prevent fraud visit www.indianamoneywise.com.