SEC Sues Ex-TMST Execs For Hiding $428M Loss In 10-K

Law360, New York (March 13, 2012, 5:38 PM EDT) -- The U.S. Securities and Exchange Commission on Tuesday sued three former TMST Inc. executives for allegedly misrepresenting investors by omitting a $428 million loss in the now-bankrupt mortgage lender’s 2007 annual report.

In a complaint filed in New Mexico federal court, the SEC says CEO Larry A. Goldstone, Chief Financial Officer Clarence G. Simmons III and Chief Accounting Officer Jane E. Starrett hid the fact that TMST — which was then known as Thornburg Mortgage Inc. — had sold portions of its securitized adjustable-rate mortgage loans...
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