Raymond James reaches proposed settlement in Jay Peak case
Raymond James disclosed in a regulatory filing: "On April 13, Raymond James & Associates, a wholly-owned subsidiary of Raymond James Financial, entered into an agreement regarding a proposed settlement of all investor claims against RJA and its affiliates relating to the previously disclosed Jay Peak EB-5 matter, an alleged fraudulent investment program created in 2007 by third parties and offered directly to foreign investors... The terms of the settlement would ensure that investors in the Jay Peak-related investment programs are fairly compensated - either by funding the costs to finish incomplete projects or by refunding the investors' investments. As of December 31, 2016, the company had accrued $50M related to this matter. The settlement also provides Raymond James with the right to recover some of the settlement payments through sharing in proceeds of certain third-party recoveries... If the agreement becomes final, the District Court will issue a bar order stipulating that no further civil actions will be commenced or prosecuted against the Raymond James released parties with respect to the events underlying the litigation... The agreement further provides that, in consideration of the release of claims and issuance of the bar order, Raymond James will pay the receiver an aggregate of $150M, which includes the $4.5M previously paid in connection with Raymond James' settlement with the State of Vermont."