The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by Jeremy Bales/Bloomberg

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Biggest SEC Settlement of 2011

<strong>J.P. Morgan Securities</strong><br /><strong>Total Settlement:</strong> $153.6 million<br /><strong>Disgorgement:</strong> $20.6 million<br /><strong>Penalty:</strong> $133 million

The SEC's largest case of 2011 got to the heart of financial institutions seeking to dump toxic housing securities. The <a href="http://www.sec.gov/news/press/2011/2011-131.htm">SEC alleged</a> that J.P. Morgan Securities misled "investors in a complex mortgage securities transaction just as the housing market was starting to plummet." The SEC also accused a lower-level collateral manager, Edward Steffelin, with negligence and dropped plans to sanction a senior executive, <a href="http://www.bloomberg.com/news/2011-10-20/sec-cases-bypass-top-execs-to-target-employees-for-negligence.html">according to Bloomberg</a>. Steffelin is fighting the SEC claims of negligence, and no criminal charges were filed.

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