3 Mortgage Executives Charged with Fraud
Mortgage News Daily has posted an article about the SEC's charges of fraud against three executives' activities at New Century Mortgage.
The U.S. Securities and Exchange Commission (SEC) has accused Brad Morrice, former Chief Executive; Patti Dodge the former CFO and former Controller David Kenneally of covering up the "rapidly declining financial condition of their firm before it filed for bankruptcy in April, 2007."
They are officially charged with not keeping investors informed about the company's financial condition, accounting violations and causing "substantial investor losses."
The company announced in February 2007 that it had to restate its 2006 financial statements at which point its stock plunged 36 percent to the high teens. It was trading at less than $1 when the company finally filed for bankruptcy.
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