Federal regulators have accused three former top executives of collapsed mortgage lender New Century Financial Corp. of fraud, saying they misled investors as the company's subprime loan business was failing in 2006.
In a lawsuit, the Securities and Exchange Commission is seeking injunctions, and unspecified civil fines and restitution against New Century's former CEO and co-founder Brad Morrice, former chief financial officer Patti Dodge and former controller David Kenneally.
Irvine, Calif.-based New Century had been the No. 2 U.S. maker of subprime mortgage loans. The company filed for bankruptcy protection in April 2007 after disclosing accounting errors.
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