SEC Hits 3 Former New Century Execs With Fraud Suit

Law360, New York (December 7, 2009, 5:29 PM EST) -- The U.S. Securities and Exchange Commission on Monday accused three former top officers of New Century Financial Corp. — once the U.S.' second-largest subprime lender — of lying to investors about the company's losses from loan defaults in 2006.

In the U.S. District Court for the Central District of California, the SEC filed a 52-page civil fraud suit against former CEO Brad A. Morrice, former Chief Financial Officer Patti M. Dodge and ex-Controller David N. Kenneally.

According to the regulator, the former executives hid important information...
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