SEC charges New Century execs w/fraud

graphrix

graphrix

New member
Well...it is about damn time.

The Securities and Exchange Commission today charged three former executives of failed Irvine-based subprime lender New Century Financial with fraud for allegedly misleading investors as the business was "collapsing" in 2006.

Robert Khuzami, the agency's director of enforcement, said, "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."

The SEC is charging former chief executive and co-founder Brad Morrice of Laguna Beach; former chief financial officer Patti Dodge of Irvine; and former controller David Kenneally of Rossmoor. The complaint, filed in federal court in the Central District of California, seeks civil penalties and from Morrice and Dodge reimbursement of bonuses and other incentive or equity-based compensation.

In addition, the SEC is seeking a severe personal penalty against the three: a bar against ever again serving as officers or directors of a publicly traded company.
 
Funny, I knew a person who worked in New Century, they made HUGE money.... Now they're working as a Executative Secetary.

It IS about time. Sheesh... the only good thing I can think of is the anal checkup these guys are going to get from the IRS, the SEC and maybe... just maybe, the Feds.

Anyways good luck
-bix
 
Not the orange man, but...


A 32-year-old Corona del Mar man has been charged with felony conspiracy to defraud another of property, 17 counts of grand theft by false pretense, two felony counts of identity theft and two felony counts of false personation, according to a statement released this afternoon by the Orange County District Attorney's office.
A father, 60, and son, 28, from Laguna Beach also were charged with the same counts as part of a scheme to inflate property appraisal values in order to secure more business with lending institutions. If convicted, each defendant could face 18 years in state prison. The father and son were arrested last week in Laguna Beach and are free on $100,000 bail, and a warrant has been issued for the Corona del Mar man.
According to the district attorney's office release, the father owned an operated an Irvine-based appraisal firm, Landmark Equities Group, from 2005 to 2007. The son and the other man were hired as executives.
Landmark worked with a subprime mortgage company owned by the victim of a recent home-invasion robbery, the statement said.
Click to expand...

http://www.coronadelmartoday.com/home/cdm-man-wanted-in-connection-with-appraisal-fraud-case/
 
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