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| New Century Financial Corp. has been subpoenaed by a grand jury and is now under investigation by the Securities and Exchange Commission. In addition, the beleaguered subprime lender said it made a $500 million mistake on an SECÂ filing yesterday.
The Irvine, Calif.-based company, which previously reported the U.S. attorney was conducting a criminal investigation, has since received a grand jury subpoena, according to an 8-K filing today with the SEC. New Century said it intends to cooperate with the Department of Justice’s request for certain documents in connection with trading in its securities, as well as repurchase loss accounting errors. In addition, the real estate investment trust received a letter yesterday from the SEC’s Pacific Regional Office indicating the agency is conducting a preliminary investigation and requesting documents relating to the events leading up to New Century’s restatement. “The company intends to cooperate with the requests of the SEC,” the filing said. Another SEC filing today indicated yesterday’s filing, which listed all the creditors New Century has defaulted with, had a $500 million error. The original report showed $0.9 billion in loans financed under an agreement with Credit Suisse First Boston Mortgage Capital LLC but should have shown $1.4 billion, according to the filing. Meanwhile, the New York Stock Exchange notified the company that its shares are no longer suitable for continued listing, an announcement today said. The stock will now trade under the symbol NEWC on the Pink Sheets. |
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