What are the details of the SEC’s Settlement with the Settling Parties?
As a result of their investigation of the securities fraud that took place at Enron, the U.S. Securities and Exchange Commission (“SEC”) commenced several civil enforcement and administrative cease-and-desist proceedings seeking recovery for damages allegedly caused by the fraud. Proceedings were commenced against numerous parties, including J.P. Morgan Chase & Co.; Merrill Lynch & Co., Inc.; Canadian Imperial Bank of Commerce; Citigroup, Inc.; Daniel Ferguson; Ian Schottlander; Mark Wolf; Kenneth D. Rice; Kevin P. Hannon; Raymond M. Bowen, Jr.; Wesley H. Colwell; David W. Delainey; Mark E. Koenig; Paula J. Rieker; Cheryl I. Lipschutz; and Lou L. Pai (hereinafter designated as the “Settling Parties”). The Settling Parties collectively have paid approximately $450 million as part of their settlements of the SEC actions. The proceeds of these settlements were contributed to a fund to be distributed to investor victims of the fraud (the “Fair Fund”). On October 8, 2008, Judge Melinda Harm
