SEC charges new century execs in subprime fraud clampdown

The Securities and Exchange Commission (SEC) has charged three former executives at subprime lender New Century with securities fraud – including the mortgage firm’s founder Brad Morrice. The US regulator says it is “devoting significant resources” to rooting out fraud within the subprime industry – the collapse of which brought about the liquidity crisis.

New Century – liquidated since August 2008 – once branded itself “A new shade of blue chip”. The SEC complaint, filed on December 7, accuses