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.
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.