SEC charges three IndyMac executives with fraud

Former CEO Michael Perry and former CFOs Scott Keys and Blair Abernathy were accused of misleading investors about the Pasadena-based lender's poor financial condition. Abernathy agreed to settle without admitting or denying the allegations. He'll pay a $100,000 penalty as well as $25,000 in disgorgement. The SEC's case against the other two executives continues. IndyMac was seized by banking regulators in July of 2008. Its assets were acquired by an investment group that formed OneWest Bank, which went on to make additional acquisitions. From the complaint:

In 2008, Defendants knowingly or recklessly participated in IndyMac's filing of false and misleading disclosures of its financial condition in Forms 10-K, 10-Q, and/or 8-K, as well as in offering documents for $100 million in stock sales. During that time period, Defendants regularly received information regarding IndyMac's rapidly deteriorating financial condition. Despite receiving this information, Defendants participated in the filing of IndyMac's periodic reports and stock offering disclosures that made false and materially misleading statements and omissions regarding: (1) IndyMac's liquidity; (2) IndyMac's capital raising needs and activities; and (3) IndyMac Bank's capital ratio, a key regulatory metric of a bank's safety and soundness.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook