SEC Slams Former AHM Execs With Fraud Action

Law360, New York (April 28, 2009, 12:00 AM EDT) -- Federal regulators have charged American Home Mortgage Investment Corp.’s former top brass with carrying out an accounting fraud that concealed some of the first signs of the subprime meltdown from investors.

On Tuesday, the U.S. Securities and Exchange Commission filed suit in the U.S. District Court for the Southern District of New York, claiming AHM’s former chairman and CEO Michael Strauss and former Chief Financial Officer Stephen Hozie fraudulently understated first-quarter 2007 loan loss reserves by tens of millions of dollars, transforming the company’s alarming losses...
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