SEC Gives Up on Case against IndyMac CFO A. Scott Keys

SEC v. Michael W. Perry et al, Case No. CV 11-1309 R (JCx) (C.D. Cal.).  On February 7, 2013, the SEC announced that a federal judge granted summary judgment in favor of A. Scott Keys, a former CFO of IndyMac Bancorp., Inc.  The SEC alleged that former CEO Michael W. Perry and former CFOs A. Scott Keys and S. Blair Abernathy participated in the filing of false and misleading disclosures about the financial stability of IndyMac and its main subsidiary, IndyMac Bank F.S.B.  The SEC claimed that they regularly received internal reports about IndyMac’s deteriorating capital and liquidity positions, but failed to ensure adequate disclosure of that information to investors.  The SEC alleged that Perry and Keys defrauded new and existing IndyMac shareholders by making false and misleading statements about IndyMac’s financial condition in its 2007 annual report and in offering materials for the company’s sale of $100 million in new stock to investors.  Perry and Keys knew that contrary to the strong projections released, IndyMac had begun raising new capital to protect IndyMac’s capital and liquidity positions.  The SEC announced that it has not appealed the summary judgment ruling in favor of Keys and the deadline to file an appeal has expired.  The SEC previously settled with Perry and Abernathy.

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