SEC Investigates BanCorp Accounting Discrepancies

Law360, New York (October 24, 2005, 12:00 AM EDT) -- The Securities and Exchange Commission has begun a formal investigation into mortgage loans acquired by Puerto Rican mortgage company First BanCorp. The investigation comes in the wake of several scandals that have recently hit the Puerto Rican banking industry.

The investigation will look at “whether the mortgage transactions at issue were properly classified for accounting purposes as purchases of the mortgage loans by First Bank or whether they should have been treated as loans by First bank to the other financial institutions, secured by the mortgages,”...
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