WASHINGTON, Feb. 12 (UPI) -- U.S. authorities said three former IndyMac executives allegedly failed to inform the public the California lender was in trouble before it collapsed in 2008.
"Federal securities laws do not become optional when the news is negative," said Lorin Reisner, deputy director of enforcement at the Securities and Exchange Commission.
The SEC is charging former Chief Executive Officer Michael Perry and former Chief Financial Officers Scott Keys and Blair Abernathy with fraud, The Washington Post reported Saturday.
Jean Veta, an attorney representing Perry called the charges "the worst kind of Monday morning quarterbacking." An attorney for Keys, Gregory Bruch, said his client, "didn't profit in any way during this period. He tried to keep this bank alive."
The SEC said bank officials asked the Office of Thrift Supervision for permission to change the way it calculated reserves required to cover potential losses on risky loans, but failed to disclose this to shareholders.
Abernathy has settled charges that he knew up to 18 percent of IndyMac loans included inaccurate information about borrowers.
In the settlement, Abernathy admitted no wrongdoing, but agreed to stop working in accounting for two years and pay a penalty of $125,000.
