SEC Calls Franklin Bank Execs' Defense Bogus

Law360, New York (July 11, 2012, 8:18 PM EDT) -- The U.S. Securities and Exchange Commission told a Texas federal judge Monday that claims that the agency waived its right to sue two former bank executives who allegedly hid $30 million in underperforming assets from investors were frivolous and designed to prejudice the court.

SEC said in a motion that arguments by former Franklin Bank Corp. CEO Anthony Nocella and Chief Financial Officer Russell McCann that they disclosed the bank's accounting methods in SEC filings and that the agency failed to act — thereby preventing it...
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