According to a press release dated November 15, 1999, of the total money to be paid defrauded investors, $5.9 million will be paid by SunAmerica Securities of Phoenix, Arizona, and $ 1.1 million by an insurance company.
As recorded in the docket, on September 21, 1999, the Court entered several Orders by U.S. District Judge William L. Dwyer releasing all claims against certain Individual Defendants, dismissing the action against SunAmerica Securities Inc. and certain Individual Defendants with prejudice and without costs as well as dismissal of the action against Philip E. Harmon & Assocociates Inc. without prejudice and without costs. Judge William L. Dwyer further ordered that the class counsel be awarded $1,750,000 (25% of $7 million) in attorneys' fees from the common settlement fund for services performed in the litigation.
The complaint alleges SunAmerica was involved in a larger Ponzi scheme perpetrated by certain defendants. Certain defendants were affiliated with SunAmerica, which the class-action suit charged with negligence for failing to detect the fraud.