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First BanCorp Settles Fraud Suit For $8.5M

Law360 (August 8, 2007, 12:00 AM EDT) -- First BanCorp settled with the U.S. Securities and Exchange Commission on Tuesday over fraud charges related to mortgage transactions. As part of the settlement, the financial services firm agreed to pay a $8.5 million civil penalty.

The SEC alleged that First BanCorp concealed key information from its auditor and investors about more than $4 billion worth of residential mortgage-related transactions, and aided and abetted securities violations by Puerto Rico's top mortage lender, Doral Financial Corp, between 2000 and 2004.

First BanCorp reaped a profit of more...
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