Action against Defendants, a reverse-mortgage company and its CEO, CFO, and Executive Vice President, for their alleged roles in a bond mismarking scheme. According to the SEC, Defendant company fraudulently inflated the value of its portfolio of reverse-mortgage bonds by submitting inflated bond prices to a pricing service.  The SEC alleges that, as a result, Defendant company borrowed more from lenders than it would have been able to had the bonds been priced accurately, and used the borrowed funds to compensate Defendant CEO and others.  Two Defendants have consented to a partial judgment enjoining them from future violations of the charged provisions.

SEC Complaint

SEC Litigation Release

SEC Press Release