Defendant Name: Option One Mortgage Corporation

Defendant Type: Subsidiary of Public Company

Document Reference: court_doc5_12-cv-00633

Document Details

Legal Case Name SEC v. Option One Mortgage Corporation n/k/a Sand Canyon Corporation
Document Name Final Judgment as to Defendant Option One Mortgage Corporation n/k/a Sand Canyon Corporation
Document Date 26-Apr-2012
Document Format Civil Proceeding
Case Number 12-cv-00633
Federal District Court California, Central District of California
Federal District Judge Josephine Staton Tucker
Allegation Type Securities Offering
Document Summary 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.

Disgorgement & Penalty Information

Resolutions
Enjoinment
Monetary Penalties:

Disgorgement

Individual:     $14,250,558.00 Shared:    

Civil Penalty

Individual:     $10,000,000.00 Shared:    

Pre-Judgment Interest

Individual:     $3,982,027.00 Shared:    

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."