Welcome to the Credit Suisse First Payment Default 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 two RMBS offerings (ABSC AMO 2006-HE7 and ABSC MO 2006-HE6) underwritten by Credit Suisse Securities in late 2006 within 30 days of the published date of the relevant prospectus supplement for the Trust, then per the Distribution Plan of Allocation you may be entitled to receive a monetary payment from the Credit Suisse 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 (“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 in late 2006, Respondents underwrote two RMBS that were collateralized by approximately $1.9 billion of subprime mortgages. In connection with its efforts to market and sell the RMBS, the Respondents made misleading statements regarding a key investor protection known as the FPD covenant, which required the originators of the mortgage loans held by the securitization trusts (“Trusts”) to repurchase certain delinquent loans or otherwise cure breaches of the covenant. If the originators were notified of and subsequently failed to repurchase or cure a breach of the FPD covenant, Credit Suisse, through DLJ Mortgage Capital, Inc., was required to do so. Notwithstanding the FPD covenant, Credit Suisse, without disclosure, did not ensure the removal of all FPD loans originated by one originator (the “Originator”). The securities that represented the different tranches of each of the Trusts are referred to herein as “Certificates.” For a complete list of the eligible Harmed Trusts and Certificates see Exhibit A to the Distribution Plan which is posted on the Case Documents page. As a result of this conduct, the RMBS Trusts lost approximately $10,056,561 due to the mortgage loans that improperly remained in the Trusts.

Pursuant to the Order, the Commission ordered Respondents Credit Suisse Securities and Asset Backed Securities Corporation to pay, jointly and severally, $10,056,561, prejudgment interest of $2,200,000, and a civil money penalty of $6,000,000 for conduct related to the FPD practices, for a total of $18,256,561. 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.

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.

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