Defendant Name:
Option One Mortgage Corporation
Defendant Type:
Subsidiary of Public Company
Document Reference:
LR-22344
Document Details
Legal Case Name
SEC v. Option One Mortgage Corporation n/k/a Sand Canyon Corporation
Document Name
SEC Charges H&R Block Subsidiary Option One With Defrauding Investors in Subprime Mortgage Investments
Document Date
24-Apr-2012
Document Format
Civil Proceeding
Case Number
12-cv-00633
Federal District Court
California, Central District of California
Allegation Type
Securities Offering
Document Summary
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."
Disgorgement & Penalty Information
