UPDATE 2-SEC charges ex-American Home Mortgage executives
* SEC charges ex-American Home Mortgage executives
* Ex-CEO Michael Strauss agrees to settle charges
* Executives misled company auditor and investors -- SEC (Adds quotes, details of SEC charges, byline)
By Grant McCool
NEW YORK, April 28 (Reuters) - Three former senior executives of American Home Mortgage Investment Corp (AHMIQ.PK: Quote, Profile, Research), one of the biggest U.S. mortgage companies, were charged with involvement in an accounting fraud, the U.S. Securities and Exchange Commission said on Tuesday.
The regulator said in a statement that former chairman and CEO Michael Strauss and former CFO Stephen Hozie fraudulently understated first-quarter 2007 loan loss reserves by tens of millions of dollars, converting the company's loss into a fictional profit.
The pair and former controller Robert Bernstein faced civil charges of misleading American Home Mortgage's auditor, among other violations, according to the complaint in Manhattan federal court.
Lawyers for all three men could not immediately be reached for comment.
The company, which was the No. 10 mortgage lender in the United States, filed for bankruptcy protection in 2007 amid the mortgage meltdown that contributed to the financial crisis. Continued...
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
GLOBAL RECOVERY
Global economy in holding pattern - IMF
The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months. Full Article
India
US
UK
