Barclays Capital, Inc. and several of its affiliates agreed to pay a fine of US $2 billion to resolve a civil action brought by the Department of Justice that, between December 1, 2005 and December 31, 2007, it engaged in a fraudulent scheme to sell 36 residential-mortgage-backed securities by not disclosing that mortgage loans backing the deals were less creditworthy than represented, As a result, DoJ had charged that investors sustained billions of dollars in losses when more than half of the underlying loans defaulted. Two former Barclays managing directors named in the initial lawsuit also settled by payment of a combined sum of US $2 million. The individuals are Paul Menefee and John Carroll. The original complaint was filed in a federal court in Brooklyn, New York.