Defendant Name: Option One Mortgage Corporation

Defendant Type: Subsidiary of Public Company
Public Company Parent: H&R Block, Inc.
SIC Code: 6159
CUSIP: 09367110

Initial Case Details

Legal Case Name SEC v. Option One Mortgage Corporation n/k/a Sand Canyon Corporation
First Document Date 24-Apr-2012
Initial Filing Format Civil Proceeding
Case Number 12-cv-00633
Allegation Type Securities Offering
Federal District Court California, Central District of California

Violations Alleged

Securities Act
Sec 17(a)(2)
Sec 17(a)(3)


First Resolution Date 24-Apr-2012
Headline Total Penalty and Disgorgement

See Related Documents

Related Documents:

comp-pr2012-76 24-Apr-2012 Complaint
Complaint For Violations of the Federal Securities Laws
According to the SEC: "This case concerns the fraudulent sale of residential mortgage-backed securities ('RMBS') by Option One. Option One was one of the country's largest subprime lenders. In its fiscal year 2006, Option One originated nearly $40 billion in subprime mortgage loans. From on or about January 24, 2007 through March 12, 2007, Option One sponsored over $4.3 billion of RMBS in seven separate offerings."
2012-76 24-Apr-2012 Press Release--Civil Action
H&R Block Subsidiary Agrees to Pay $28.2 Million to Settle SEC Charges Related to Subprime Mortgage Investments
On April 24, 2012, the SEC announced that it "charged H&R Block subsidiary Option One Mortgage Corporation with misleading investors in several offerings of subprime residential mortgage-backed securities (RMBS) by failing to disclose that its financial condition was significantly deteriorating."
LR-22344 24-Apr-2012 Litigation Release
SEC Charges H&R Block Subsidiary Option One With Defrauding Investors in Subprime Mortgage Investments
The Litigation Release stated that: "the SEC alleges that between January and March 2007, Option One offered and sold more than $4.3 billion of RMBS in seven separate offerings. RMBS are debt obligations that represent claims to the cash flows from pools of residential mortgage loans. According to the SEC's complaint, Option One misled investors in its RMBS by promising to repurchase or replace mortgages in its RMBS that breached representations and warranties. These promises were rendered misleading by Option One's failure to disclose that its financial condition was significantly deteriorating and it could not meet its repurchase obligations on its own. The SEC further alleges that at the time Option One offered and sold the RMBS, it needed to rely on voluntary financial support from Block to meet its financial obligations but that Block was under no obligation to continue providing that financing. Option One never disclosed this information to investors."
court_doc5_12-cv-00633 26-Apr-2012 Court Docket Document
Final Judgment as to Defendant Option One Mortgage Corporation n/k/a Sand Canyon Corporation
On April 26, 2012, Federal District Judge entered final judgment as to Option One Mortgage Corporation pursuant to the SEC and Option One's consent.