Wednesday, March 14, 2012

Another Large Mortgage Company Gets Hit by the SEC

According to the Huffington Post, three executives from Thornburg Mortgage Inc. have been charged with civil accounting fraud. In the past, Thornburg Mortgage was the second largest independent mortgage company in the US, after Countrywide. The allegations state that the executives conspired to hide terrible conditions and overstate the company's income by more than $400 million during the collapse of the housing market.

The lawsuit was filed this Tuesday in Albuquerque, N.M. The Securities and Exchange Commission is seeking fines and restitution from the three executives and is hoping to ensure they will no longer be able to serve on the board of any public company.

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