Welcome to the Credit Suisse Bulk Settlement Practice Fair Fund Website

The United States Securities and Exchange Commission (“SEC” or “Commission”) established a Distribution Fund as a result of the SEC v. Credit Suisse Securities (USA) LLC, DLJ Mortgage Capital, Inc., Credit Suisse First Boston Mortgage Acceptance Corp., Credit Suisse First Boston Mortgage Securities Corp., and Asset Backed Securities Corporation (collectively, the “Respondents”) enforcement action.

If you purchased or otherwise acquired residential mortgage backed securities (“RMBS”) related to RMBS Trusts harmed by Credit Suisse’s misrepresentations and omissions in its offering materials regarding the Bulk Settlement Practice from approximately 2005 through 2010 and within 30 days of the published date of the relevant prospectus supplement for the 75 Trusts, then per the Distribution Plan of Allocation you may be entitled to receive a monetary payment from the Credit Suisse Bulk Settlement Practice Fair Fund (“Fair Fund”).

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice of Pendency and Proposed Settlement of Class Action ("Notice") and Settlement Agreement, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully.

Background

On November 16, 2012 the United States Securities and Exchange Commission issued an Order Instituting Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order against Credit Suisse Securities (USA) LLC, DLJ Mortgage Capital, Inc., Credit Suisse First Boston Mortgage Acceptance Corp., Credit Suisse First Boston Mortgage Securities Corp., and Asset Backed Securities Corporation . The Order stated that from approximately 2005 through 2010, Respondents entered into a number of financial settlements with loan originators related to early defaulting loans that Respondents had previously sold to RMBS trusts it sponsored ("Trusts"). The assets of the Trusts were aggregations of residential mortgages. Each Trust was divided into numerous "tranches" or classes which were securitized interests in the assets of the relevant Trusts. The securities that represented the different tranches of each of the Trusts are referred to as "Certificates." For a complete list of the eligible Harmed Trusts and Certificates see Exhibit A to the Distribution Plan on the Case Documents page. When Respondents entered into the financial settlements with loan originators, Respondents kept the proceeds of those settlements without notifying or passing the proceeds on to the RMBS Trusts ("Bulk Settlement Practice"). Respondents failed to disclose this practice to its RMBS investors. Additionally, with respect to certain RMBS transactions, Credit Suisse failed to comply with offering document provisions that required it to repurchase certain early defaulting loans.

Pursuant to the Order, Respondents paid disgorgement of $55,747,769, prejudgment interest of $13,000,000, and a civil money penalty of $33,000,000 for a total of $101,747,769. This amount, less any taxes assessed against the Fair Fund (the "Net Available Fair Fund"), is available for distribution to harmed investors.

Fund Administration

On January 14, 2014, the Commission issued an Order appointing Gilardi & Company, LLC as the Fund Administrator, to assist in overseeing the administration and distribution of the Fair Fund in coordination with Commission staff, pursuant to the terms of the Distribution Plan.

Fair Fund

The Fair Fund is a “Qualified Settlement Fund” (“QSF”) as defined in U.S. Treas. Reg. Sec. 1.468B-1 et seq. The distribution is intended to compensate you for losses incurred with respect to your investment in Credit Suisse RMBS as a result of the conduct described in the Order.

Generally, your distribution is not income to you to the extent of your basis in your investment. However, you must reduce your basis by the amount of your distribution. If your distribution exceeds your tax basis in your investment, then the excess is includable in your income as capital gain. Any such capital gain is long-term capital gain, unless you disposed of your investment before holding it for longer than one year. If you do not have reasonable access to records indicating the tax basis of your investment, then you may assume that your tax basis is zero and that the entire losses component of your distribution is includable in your income as capital gain. The QSF is not required to – and will not – issue a Form 1099 to you with respect to the losses component of the distribution.

You should consult your tax advisor or accountant as to the treatment of the payment you are receiving under this Fair Fund, as the Fund Administrator and the SEC cannot provide you with tax advice.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

DEADLINES