including the former CEO and two former CFOs of the company.
The SEC complaint alleges that the former IndyMac executives made false and misleading claims in the company's 2007 annual report—as well as in offering materials for a $100 million stock offering.
The SEC press release summarizes:
"In early February 2008, IndyMac projected that it would return to profitability and continue to pay preferred dividends in 2008 without having to raise new capital. In late February 2008, Perry and Keys knew that contrary to the rosy projections released just two weeks earlier, IndyMac had begun raising new capital to protect IndyMac's capital and liquidity positions. Specifically, Perry and Keys regularly received information that IndyMac's financial condition was rapidly deteriorating and authorized new stock sales as a result. Yet they fraudulently failed to fully disclose IndyMac's precarious financial condition in the 2007 annual report and the offering documents for the new stock sales."
According to a second complaint, when Abernathy replaced Keys as CFO, Abernathy made similar false and misleading statements in official documents—despite reports of deteriorating capital positions.
In addition, the complaint alleges that Abernathy made false and misleading statements about the quality of IndyMac loans, which were then sold in residential mortgage backed securities (RMBS).
The SEC is now seeking disgorgement of ill-gotten gains, with prejudgment interest, as well as financial penalties.
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