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New Century, continued ...
In its complaint, the SEC alleges that New Century disclosures
generally sought to assure investors that its business was not at risk
and was performing better than its peers. The defendants, however,
failed to disclose important information, including dramatic increases
in early loan defaults, loan repurchases, and pending loan repurchase
requests. The suit also contends that the defendants knew about this
negative information from numerous internal reports. In fact, Morrice
ominously referred to these reports as "Storm Watch."
The SEC is committed to holding accountable those in who were
fraudulent in the collapse of the subprime industry and is devoting
significant resources to identifying and charging perpetrators.
Previous mortgage-related SEC enforcement actions include securities
fraud charges against Angelo Moziolo, CEO, Countrywide Financial, and
the CEO and other senior executives of American Home Mortgage
Investment Corp.
The complaint also alleges that Dodge and
Kenneally fraudulently accounted for expenses related to bad loans that
it had to repurchase. In the face of dramatically increasing loan
repurchases and a huge, undisclosed backlog of repurchase demands,
Kenneally, with Dodge's knowledge, made changes to New Century's
accounting for loan repurchases in both the second and third quarters
of 2006.
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New Century, continued ...
In its complaint, the SEC alleges that New Century disclosures
generally sought to assure investors that its business was not at risk
and was performing better than its peers. The defendants, however,
failed to disclose important information, including dramatic increases
in early loan defaults, loan repurchases, and pending loan repurchase
requests. The suit also contends that the defendants knew about this
negative information from numerous internal reports. In fact, Morrice
ominously referred to these reports as "Storm Watch."The SEC is committed to holding accountable those in who were fraudulent in the collapse of the subprime industry and is devoting significant resources to identifying and charging perpetrators. Previous mortgage-related SEC enforcement actions include securities fraud charges against Angelo Moziolo, CEO, Countrywide Financial, and the CEO and other senior executives of American Home Mortgage Investment Corp.
The complaint also alleges that Dodge and Kenneally fraudulently accounted for expenses related to bad loans that it had to repurchase. In the face of dramatically increasing loan repurchases and a huge, undisclosed backlog of repurchase demands, Kenneally, with Dodge's knowledge, made changes to New Century's accounting for loan repurchases in both the second and third quarters of 2006.
<< PREVIOUS 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
