Michael Perry, the former chief executive officer of IndyMac Bancorp Inc., agreed to pay an $80,000 penalty to settle the remaining claim against him by the U.S. Securities and Exchange Commission.
Perry neither admits nor denies the SEC’s allegations, according to the terms of the settlement filed Sept. 27 in federal court in Los Angeles.
The single negligence-based claim was all that was left of the fraud case against Perry that the SEC had brought in 2011, accusing him of misleading investors about the mortgage lender’s worsening financial condition before its 2008 collapse. U.S. District Judge Manuel Real this year threw out the SEC’s other claims against Perry.
“The court ruled in Mr. Perry’s favor on every claim that was presented to it,” D. Jean Veta, a lawyer for Perry, said in an e-mailed statement. “Despite significant reluctance, Mr. Perry had long tried to resolve this case on reasonable terms. It just so happens that we needed to score some victories before the SEC was of a similar mind.”
IndyMac, once the second-largest U.S. independent mortgage lender, was seized by regulators in July 2008 after a run by depositors left the Pasadena, California-based firm strapped for cash. The SEC alleged that Perry failed to warn investors of the lender’s deteriorating capital and liquidity positions in 2007 and 2008 even though he had regularly received internal reports detailing the problems.
Donald Searles, a lawyer for the SEC in Los Angeles, didn’t immediately return a call for comment on the ruling.
The case is SEC v. Perry, 11-1309, U.S. District Court, Central District of California (Los Angeles).