The Complaint is 51 pages long. It recites on its face that it addresses alleged Federal Securities Law Violations. It contains 130 numbered paragraphs of allegations. There are ten (10) paragraphs of Prayers for Relief. The Claims are variously alleged against two or all of the three Defendants. The eight (8) Claims alleged are for:
1. and 2. Two Claims of alleged Fraud in regard to Securities;
3. A Claim of alleged Reporting Requirements Violations;
4. Alleged Falsification of Books and Records;
5. Alleged Circumvention of Internal Controls;
6. Alleged False Statements to Accountants;
7. Alleged Certification Violations; and
8. Alleged Failure to Reimburse.
Here is a downloadable pdf of the SEC's Complaint in this new case: Download Complaint.SEC v Brad A. Morrice, et al.CD Cal Case No SACV09-01426.Filed 1207009.
Most interesting from an Insurance Coverage point of view, and from the point of view of learning about various subprime lending practices that led in large measure to the current Great Recession, the SEC has alleged in great detail what the three individual Defendants and their subprime lending institution, the New Century Financial Corporation, did and failed to do that led to the SEC filing the massive Complaint in this case against the three individual officers. (New Century is apparently in bankruptcy and beyond reach of the SEC's civil Complaints.)
In that regard, the Prayers for Relief in this Complaint may or may not include Prayers for "Damages," in particular. The SEC seeks in this Complaint to compel the Defendants to "disgorge all ill-gotten gains from their illegal conduct" together with Prejudgment Interest, "reimbursement," and "civil penalties," among other things.
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