The long and twisting tale of the Securities and Exchange Commission's case against Christopher Brogdon added yet another chapter last week as a trustee notified bondholders of disbursements coming from a fair fund set up to benefit investors harmed by Brogdon's alleged violations.
In 2015, the SEC
Since 1992, Brogdon had raised more than $190 million for such projects through conduit municipal bond and private placement offerings, the complaint said.
On Jan. 17, 2020, the court entered a final judgment as to both Brogdons, ordering them to pay $47.7 million to the SEC, which included disgorgement and prejudgment interest. Christopher Brogdon also was ordered to pay a $320,000 civil penalty to the SEC. The Brogdons consented to the judgment without admitting or denying the complaint's allegations.
Trustee BOKF, NA, in notices posted on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access website last week, advised bondholders of a distribution being made to bondholders in accordance with an "Order Approving Disbursement from Fair Fund" filed in connection with the case. The order was filed on May 21.
In September 2025, the court issued an order appointing Jennifer Cardello, an SEC employee, as the distribution agent for the fair fund. The order also approved a distribution plan submitted by the SEC.
According to the distribution plan, appended to the court's order filed on Sept. 3, 2025, the plan provides for the distribution of the fair fund consisting of disgorgement, civil monetary penalties and post-judgment interest collected from the Brogdons.
The plan, according to the filing, "provides for the distribution of the Fair Fund, including any future collections from the Brogdons in this proceeding, less a reserve for taxes and fees, to compensate investors in certain fraudulent securities offerings which closed on or after November 20, 2010 and remain outstanding." According to the plan, the distribution agent "will engage a Third-Party, Simpluris Inc.," to handle certain tasks associated with plan implementation.
In his May 21 order approving disbursement from the fair fund, U.S. District Judge Julien Xavier Neals granted an SEC motion and directed the SEC to transfer the net available fair fund of nearly $3.92 million "by transferring $372,064.98 to the escrow account held by the Third-Party" and by transferring $3.54 million to the indenture trustee.
The order directed the third-party and the indenture trustee to disburse those amounts to the eight securities offerings listed on Exhibit A of the motion in accordance with the distribution plan.
Among notices issued by BOKF was one to holders of The Medical Clinic Board of the City of Mobile (Second) first mortgage healthcare facility revenue bonds (Bama Oaks Retirement, LLC Project), Series 2012A and 2012B, advising them that a pro-rata principal distribution would be made. The notice, dated Aug. 3 and posted on Aug. 4, said a fair fund disbursement totaling $1.46 million would be made on Aug. 7.
The Brogdon case also impacted BOKF, among others. On Sept. 9, 2016, the SEC instituted and simultaneously settled an administrative proceeding against BOKF. In its order, the SEC alleged that as indenture trustee and dissemination agent for the majority of Brogdon's bond offerings since 2000, BOKF, primarily through Marrien Neilson, a former senior vice president at BOKF, "allowed Brogdon to perpetuate this fraud while failing to perform its disclosure and notice obligations to bondholders."
BOKF, which consented to the order's entry without admitting or denying the SEC's findings, was ordered to pay a total of nearly $1.67 million in disgorgement, prejudgment interest and a civil monetary penalty.
