Defendant Name:
Capital One Financial Corporation
Defendant Type:
Public Company
Document Reference:
2013-72
Document Details
Legal Case Name
In the Matter of Capital One Financial Corporation, Peter A. Schnall, and David A. LaGassa
Document Name
SEC Charges Capital One with Understating Auto Loan Losses
Document Date
24-Apr-2013
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On April 24, 2013, the SEC announced that it charged Capital One Financial Corporation ("Capital One") and two senior executives--former Chief Risk Officer Peter A. Schnall ("Schnall") and former Divisional Credit Officer David A. LaGassa ("LaGassa")--for understating millions of dollars in auto loan losses incurred during the months leading into the financial crisis. According to the SEC's order instituting settled administrative proceedings, for the second and third quarters of 2007, Capital One's loan loss expense for Capital One Auto Finance did not appropriately estimate probable incurred losses in accordance with accounting requirements. The SEC's order also finds that Schnall and LaGassa caused Capital One's understatements of its loan loss expense by deviating from established policies and procedures and failing to implement proper internal controls for determining its loan loss expense. In order to settle the SEC's charges, Capital One agreed to pay $3.5 million.
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Other Defendants in Action:
