Subprime Lender Accused by SEC of Fraud on $100 Million Deal
- Honor Finance inflated collateral values to sell ABS, SEC says
- Deceived bond investors and rating agencies, regulator says
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U.S. regulators accused the co-founders of “deep subprime” auto lender Honor Finance LLC with defrauding investors in a 2016 offering of $100 million of asset-backed securities.
According to the Securities and Exchange Commission’s complaint, James Collins and Robert DiMeo artificially inflated the value of the collateral underlying the deal.