Flipping Frenzy.com is your source for news, information, and commentary on Real Estate and Mortgage Fraud. 
If you believe you have been a victim of real estate or mortgage fraud, start here! Select your state from the pulldown menu below:
New Century, Second-Largest Subprime Lender, Executives Charged with Fraud
Three former New Century Financial executives were charged with fraud by the Securities and Exchange Commission on Monday, December 7, 2009: former New Century CEO Brad Morrice; former CFO Patti Dodge and ex-controller David Kenneally.
The charges against the New Century trio were filed in U.S. district court in Los Angeles, which like the thousands of foreclosures that have roiled Southern California, has become the epicenter of litigation against former executives from mortgage originators.
An investigative report by bankruptcy examiner Michael Missal of K&L Gates criticized New Century’s auditors and outside counsel at KPMG and O’Melveny & Myers for certain accounting practices and discovery delays. But Missal came down even harder on New Century executives, whom he claimed were responsible for improper loan evaluations and inflated profits by the real estate investment trust.
New Century was once the nation’s second-largest subprime mortgage loans provider and was valued at more than $1 billion before the company filed for bankruptcy in April 2007 after the mortgage market collapsed. A trial date has not yet been set.
A Ralph Roberts Site, Copyright 2005-2008 |