TALLAHASSEE, FL –
Attorney General Bill McCollum today released the following statement on a settlement reached with J.P. Morgan Securities
LLC. The $25 million settlement resolves allegations the company sold unregistered securities to the Local Government Investment Pool contrary to Florida's securities law.
“This settlement is part of the state’s continued efforts to secure the
maximum valuation of investment securities held by the SBA,” said Attorney General McCollum. “My office will continue providing assistance to state financial regulators in these matters to ensure full compliance with the law.”
Out of the $25 million dollar settlement, $23 million will go to the State
Board of Administration to be transferred and distributed to the
participants of what was the Local Government Investment Pool. These funds will reimburse local governmental entities that saw the value of asset-backed securities decline in August 2007, some of which were sold to the State Board of Administration for the Local Government Investment Pool by J. P. Morgan. The remaining $2 million will go to the Office of Financial Regulation (OFR) to reimburse the costs of the investigation and administrative fines.
The State Board of Administration also released the following statement:
“We believe the settlement is a fair, reasonable and responsible result for the participants of the LGIP,” said Ash Williams Executive Director and CIO for the Florida State Board of Administration.