Rait Financial Says Pursuant To Settlement Terms Taberna Capital Paid $21.5M To SEC

RAIT Financial Trust

("RAIT") today announced that the U.S. Securities and Exchange Commission (the "SEC") has approved a settlement to resolve a non-public SEC investigation concerning Taberna Capital Management, LLC ("TCM"), RAIT's subsidiary. As previously disclosed, the investigation focused on exchange transactions conducted by TCM between March 2, 2009 and November 28, 2012 and on its receipt of approximately $15 million of restructuring fees from issuers of securities held by Taberna securitizations relating to these transactions. TCM entered into the settlement without admitting or denying the allegations, and the settlement resolves all violations alleged by the SEC against TCM. Pursuant to the terms of the settlement, among other things, TCM paid $21.5 million to the SEC. This amount is consistent with prior disclosure and RAIT recorded an expense for this amount during the third quarter of 2014. Scott Schaeffer, RAIT's Chairman and CEO said, "As previously disclosed, this settlement with the SEC deals with the legacy Taberna business which we exited in December 2014. The approval of the settlement by the SEC regarding TCM resolves this investigation."