SEC Drops Three Charges Against Thornburgh Execs – NMP Skip to main content

SEC Drops Three Charges Against Thornburgh Execs

Sep 26, 2016
One of the high-profile lawsuits brought in the aftermath of the 2008 financial meltdown has been quietly whittled down

One of the high-profile lawsuits brought in the aftermath of the 2008 financial meltdown has been quietly whittled down.

According to a Reuters report, the U.S. Securities & Exchange Commission (SEC) has dropped three of the five remaining civil claims against two executives of the now-defunct Thornburg Mortgage Inc. The SEC made no public mention of its actions, with news of the dropped charges being made via court filings.

The SEC filed its lawsuit in 2012 against Thornburg's CEO Larry Goldstone, Chief Financial Officer Clarence Simmons and Chief Accounting Officer Jane Starrett, accusing them of hiding the company's perilous financial health prior to the financial crisis. In May, Starrett agreed to pay $25,000 in a settlement that did not require her to admit the allegations.

Goldstone and Simmons went to trial this year, but a federal jury found them not liable on five out of 10 counts while deadlocking on the remaining charges. A retrial is scheduled for February and will focus on the two remaining charges.

About the author
Published
Sep 26, 2016
MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk

UAD 3.6 Deadline Nears; First American Earns Verification

First American's ACI Sky Workbench gains verification ahead of the Nov. 2 implementation date for the GSEs' updated appraisal reporting requirements

MISMO Introduces New Loan Boarding Standard

Wrapper Files support standardized data transfers between origination and servicing systems, with potential savings of $60 to $160 per loan

The GLBA Compliance Gap Your AI Deployment Just Opened

Old statutes, new models, and the vendor contract you signed before machine learning became operational

FHA Keeps Tri-Merge Credit Reports While Expanding Approved Scoring Models

HUD says FHA lenders will continue using three-bureau credit reports even as the agency adopts newer scoring models aimed at increasing competition and modernizing mortgage underwriting