Ex-Bond Highflier Is Warned by SEC
U.S. securities regulators have warned a former top architect of the structured-finance boom that they are considering civil charges alleging he misled investors in a mortgage-bond deal that imploded, people familiar with the situation said.
Alexander Rekeda, who led Japanese bank Mizuho Financial Group Inc.'s charge into the then-red-hot business of U.S. subprime debt in 2006, was warned by the Securities and Exchange Commission in October that he faces the potential charges, according to a regulatory filing. Mr. Rekeda received a so-called Wells notice, a letter typically giving the recipient a final opportunity to dissuade the SEC from filing an enforcement action.
It isn't clear how Mr. Rekeda responded to the warning, but SEC officials haven't dropped the case, according to people familiar with the matter. Civil charges could be filed by this summer, these people said, though the process has been slowed by the large number of individuals and companies involved in the probe and the complexity of some legal issues related to the case.
A lawyer for Mr. Rekeda declined to comment. READ MORE...
| Posted by JEAN EAGLESHAM on Feb 21, 2012 | ||
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