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New Century principles face SEC fraud charges
The Securities and Exchange Commission sues officers of Irvine-based company for misleading investors.
By Susan BelknappPublished: December 08, 2009 10:20 AM
The Securities and Exchange Commission charged three former top officers of Irvine-based New Century Financial Corporation with securities fraud on Monday. The suit claims the principles misled investors while the company’s subprime mortgage business was collapsing in 2006. At that time, New Century was one of the largest subprime lenders in the nation.
"New Century shareholders took a double-hit: the company's mortgage assets and business performance became increasingly impaired, and management manipulated its numbers and concealed its deteriorating performance," says Robert Khuzami, director of Enforcement for the SEC.
The defendants named in the New Century case are:
• Former CEO and co-founder Brad A. Morrice of Laguna Beach.
• Former CFO Patti M. Dodge of Irvine.
• Former Controller David N. Kenneally of Rossmoor, Calif.
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"New Century shareholders took a double-hit: the company's mortgage assets and business performance became increasingly impaired, and management manipulated its numbers and concealed its deteriorating performance," says Robert Khuzami, director of Enforcement for the SEC. The defendants named in the New Century case are: • Former CEO and co-founder Brad A. Morrice of Laguna Beach. • Former CFO Patti M. Dodge of Irvine. • Former Controller David N. Kenneally of Rossmoor, Calif. NEXT PAGE >> Related headlines Anaheim's Harbor Lofts auction is Dec. 13 Anaheim officials may give KTGY larger role in ARTIC Grubb & Ellis executive accepts Maguire appointment Bomel Construction completes Fashion Island parking structure Santa Ana’s RiverRock strengthens foundation Whole Foods Market plans to open at Bella Terra Cities take hit with loss of tax revenue |
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