Tatiana Rodriguez | Bloomberg LawSEC Press Release No. PR -2011-202 (Oct. 11, 2011); SEC Litigation Release No. LR-22121 (Oct. 11, 2011); SEC v. Wu, No. 11-CV-04988(N.D. Cal. filed Oct. 11, 2011); FDIC Press Release No. PR-162-2011 (Oct. 11, 2011); U.S. Attorney's Office for the Northern District of CA, Press Release (Oct. 11, 2011); United States v. Shabudin, No. 11-CR-00664 (N.D. Cal. filed Sept. 15, 2011) The Securities and Exchange Commission (SEC), Federal Deposit Insurance Corporation (FDIC), and U.S. Attorney's Office for the Northern District of California (DOJ) (collectively, Agencies) brought parallel actions against bank executives of UCBH Holdings, Inc. (UCBH), for concealing millions in company losses that resulted in one of the 10 largest bank failures of the recent financial crisis. The bank's failure resulted in an estimated $2.5 billion dollar loss to the FDIC and a failure to repay $298 million of troubled asset relief program (TARP) funds. The Agencies' actions focus on bank executives and officers' alleged concealment of loan losses, and misrepresentations to outside auditors, regulators, and the investing public. According to Christy Romero, Acting Special Inspector General for TARP, "Shabudin and Yu are the first senior executives of a TARP bank charged in connection with a scheme to defraud investors, which included the Treasury, and by extension the American taxpayer."
Private Causes of Actions
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