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SEC charges 3 top executives of failed big mortgage company Thornburg with civil fraud
WASHINGTON (AP) ' Federal regulators are charging three top executives of what was once one of the nation's biggest mortgage companies with civil accounting fraud.
The Securities and Exchange Commission says the now-defunct Thornburg Mortgage Inc. aimed to conceal disastrous conditions as the housing market collapsed and the financial crisis loomed.
The SEC says the three executives conspired to overstate Thornburg's income by more than $400 million in 2007. The company's lenders were demanding payments it wasn't able to meet, the SEC said in a lawsuit filed Tuesday in federal court in Albuquerque, N.M.
The three are former CEO Larry Goldstone, ex-chief financial officer Clarence Simmons and ex-chief accounting officer Jane Starrett. The SEC seeks unspecified fines and restitution.
Thornburg's bankruptcy filing in May 2009 was among the largest in U.S. history.