Washington, D.C., Feb. 11, 2011 — The Securities and Exchange Commission today charged three former senior executives at IndyMac Bancorp with securities fraud for misleading investors about the mortgage lender’s deteriorating financial condition.
The SEC alleges that former CEO Michael W. Perry and former CFOs A. Scott Keys and S. Blair Abernathy participated in the filing of false and misleading disclosures about the financial stability of IndyMac and its main subsidiary, IndyMac Bank F.S.B. The three executives regularly received internal reports about IndyMac’s deteriorating capital and liquidity positions in 2007 and 2008, but failed to ensure adequate disclosure of that information to investors as IndyMac sold millions of dollars in new stock.
Yep. Just charge 'em in a civil case, sue 'em basically, and demand that they give back any money they made.
In the meantime everyone else who got cornholed as a result of listening to these chimps still lost their money. And incidentally, there's this guy over at OTS who helped them backdate capital, after doing the same damn thing at Lincoln Savings and Loan - you know, back in the S&L days?
Not only did he not go to prison the first time he didn't even lose his job until he did it again.
“These corporate executives made false and misleading disclosures about IndyMac at a time when the company’s financial condition was rapidly deteriorating. Truthful and accurate disclosure to investors is particularly critical during a time of crisis, and the federal securities laws do not become optional when the news is negative,” said Lorin L. Reisner, Deputy Director of the SEC’s Division of Enforcement.
This, of course, is why there's a criminal indictment carrying 20 years in prison, right?
Oh wait.... there's not?
The SEC’s complaint against Perry and Keys seeks permanent injunctive relief, an officer and director bar, disgorgement of ill-gotten gains with prejudgment interest, and a financial penalty.
Nope, there's not.
Gee, I wonder why these sorts of things aren't crimes.....
Oh wait... they are under Sarbanes-Oxley, aren't they? Why indeed they are.
Hmmm..... the reason that there isn't a concurrent criminal complaint against these folks under Sarbox is?
I thought the entire purpose of Sarbanes-Oxley was to jail executives that made materially-false and misleading statements about the health of their company?
WHERE ARE THE DAMNED HANDCUFFS?
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