Defrauded MBIA investors get $60 million

Distributions of $60 million have been made to investors of municipal bond insurer MBIA Inc. of Armonk, N.Y., the Securities and Exchange Commission announced today.
MAR 27, 2009
By  Bloomberg
Distributions of $60 million have been made to investors of municipal bond insurer MBIA Inc. of Armonk, N.Y., the Securities and Exchange Commission announced today. The funds were distributed to 20,000 investors who purchased MBIA’s securities from Sept. 11, 1998, through Nov. 22, 2004. The distribution is part of an enforcement settlement entered into between the SEC and MBIA in 2007. The settlement arose from a sham reinsurance transaction that the company entered into to avoid having to recognize a $170 million loss. The transaction was restated in 2005 The Sarbanes-Oxley Act of 2002 gives the SEC the authority to use penalties collected in securities fraud cases to reimburse harmed investors. So far, the regulator has returned more than $2 billion to investors under the law. “The MBIA Fair Fund is the latest example of our continuing commitment to returning disgorgement and penalties to investors harmed by violations of the securities laws,” Scott Friestad, deputy director of the SEC’s Division of Enforcement, said in a statement.

Latest News

RIA moves: RWA Wealth Partners strengthens leadership as $8B Procyon widens Northeast footprint
RIA moves: RWA Wealth Partners strengthens leadership as $8B Procyon widens Northeast footprint

The Dynasty Financial partner firm's latest deal in Connecticut adds roughly $600 million in client assets.

Cetera names Richard Vogel to lead Cetera Advisors community
Cetera names Richard Vogel to lead Cetera Advisors community

The giant broker dealer and RIA overseeing roughly $554 billion in AUA has appointed a Merrill and BofA alum to support advisor growth.

Robinhood in talks with regulators over tokenized US equities
Robinhood in talks with regulators over tokenized US equities

Firm's CEO is confident SEC can approve without legislation.

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC's Aspire Holdings exited their investments.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.