BRADENTON, Fla. — The Securities and Exchange Commission is recommending that Jefferson County, Ala., receive a $25 million disgorgement and civil penalty that JPMorgan paid into an SEC “fair fund” designed to compensate harmed investors and issuers.

The money is part of an SEC settlement in November of securities fraud and other charges against JPMorgan involving nearly $3.2 billion of troubled variable- and auction-rate sewer warrants and related interest-rate swaps Jefferson County sold in 2002 and 2003. The county has since defaulted on the warrants.

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