Ex-New Century Managers to Pay $1.5 Million Over Firm Collapse
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Three former New Century Financial Corp. executives agreed to pay more than $1.5 million to settle U.S. regulatory claims that they failed to disclose risk in the firm’s subprime-mortgage business before it collapsed in 2007.
Brad Morrice, the company’s former chief executive officer, will return $464,354 in ill-gotten profits plus $76,991 in interest and pay a $250,000 fine, the Securities and Exchange Commission said today in a statement posted on its website. Patti Dodge, the ex-finance chief, will pay $550,000, and David Kenneally, the former controller, will pay $182,500.