Federal Grand Jury investigating New Century, Countrywide and IndyMac
July 24th, 2008, 8:26 am · 3 Comments · posted by Mathew Padilla, Reporter
A federal grand jury is investigating New Century Financial of Irvine, IndyMac Bancorp of Pasadena, and Calabasas-based Countrywide, reports the Los Angeles Times, which quotes anonymous sources.
Subpoenas have been issued in recent months that seek e-mails, phone bills and bank records of the three companies, according to the Times. Subpoenas come on the heels of interviews that federal investigators conducted with employees and others close to the failed lenders.
New Century disclosed last year that federal regulators were probing securities transactions and its accounting practices. And previous press reports have said the Federal Bureau of Investigation is conducting a sweeping probe of the mortgage and securities industries, including IndyMac and Countrywide.
A bankruptcy court examiner in March issued a damning report against New Century and its auditor KPMG that said, among other things, the auditor allowed the company to change its accounting practices so it could report a profit rather than a loss in the second half of 2006.
Investigators also are looking at home loans that former Countrywide CEO Angelo Mozilo personally handled for members of Congress and other influential figures, the Times said.
Spokesmen and lawyers for the the companies and FDIC, which controls IndyMac, declined to comment or could not be reached, and federal investigators declined to comment on the record, according to the Times.
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July 24th, 2008 at 10:16 am
The average CEO, VP, and even CFO of any large mortgage company, especially the ones like New Century know nothing about SEC laws and regulations. This is why they had corporate lawyers and big acounting firms like KPMG. I know it was the responcibility of the CEO to sign off but should we not use the vast resources wasted on all this to go after drug dealers?
Lou Pacific
Real Estate and Mortgage Company Consultant
Serving OC for 30 Years
July 29th, 2008 at 2:52 pm
Lou,
Agreed… Incompetence is not the same as criminality.
August 10th, 2008 at 11:42 am
As a borrower of Both IndyMac and Countrywide, I can honestly say that, What a bank heist guys!! You didn’t even have to have a gun!!
So you boys made off with the dough and the FDIC pays off the depositors and well ……they should have known they would not get full value………………………and the borrowers like me, we’re stuck paying off all the fees and what nots because the FDIC is going to sell my house loan to some other crook for pennies on the dollar. Of course I am on the hook for the full amount. I signed a contract you know. What a deal.
Coming to a bank near you. No accountability for sure.