Defendant Name: Hampton Roads Bankshares, Inc.

Defendant Type: Public Company

Document Reference: 2014-271

Document Details

Legal Case Name In the Matter of Hampton Roads Bankshares, Inc.
Document Name SEC Charges Virginia Beach-Based Bank Holding Company With Accounting Violations
Document Date 05-Dec-2014
Document Format Administrative Proceeding
File Number 3-16296
Allegation Type Issuer Reporting and Disclosure
Document Summary On December 5th, 2014, the SEC charged Hampton Roads Bankshares with accounting violations in regard to the company's recording of deferred tax assets (DTA). According to the SEC, the inflated DTA reported on the Hampton Bankshares' balance sheets resulted in a material understatement of its losses on its income statement for fiscal year 2009 and the first quarter of 2010.

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order

Related Documents:

34-73750 05-Dec-2014 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order and Civil Penalties
On December 5, 2014, the SEC instituted settled administrative proceedings against Hampton Roads Bankshares, Inc. According to the SEC: "This matter involves HRBS's accounting treatment in connection with the recording of its deferred tax asset ("DTA") in 2009 and 2010. During 2009 and the first quarter of 2010, HRBS recorded a large DTA without taking a significant valuation allowance against it. HRBS concluded that based on anticipated future earnings, the Company was "more likely than not" to realize its DTA within the applicable carry-forward period. This conclusion was unreasonable because the financial projections underlying HRBS's projections of future earnings were not supportable based on the Company's financial condition, including in particular the ongoing deterioration of its loan portfolio."

Related Actions:

In the Matter of Neal A. Petrovich, CPA
Neal A. Petrovich