Consumer Law

3 Mortgage Executives Charged with Fraud

By M. Stan Herring

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.

If you have had problems with fraud, feel free to contact us. You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Full post as published by Alabama Consumer Blog on December 16, 2009 (boomark / email).