New Century receives grand jury subpoena
Mortgage lender says U.S. Attorney's office has launched a criminal investigation into trading of its securities.
NEW YORK (CNNMoney.com) -- Embattled mortgage lender New Century Financial Corp. said in a regulatory filing Tuesday that it had received a grand jury subpoena from the U.S. Attorney's Office for the Central District of California as well as a letter from the Securities and Exchange Commission notifying the company of a preliminary investigation.
New Century (Charts) said in the filing that the U.S. Attorney's office indicated in its Feb. 28 letter that it was conducting a criminal inquiry in connection with trading in the company's securities as well as accounting errors regarding the company's allowance for repurchase losses.
Separately, New Century said the SEC, in a letter received Monday, requested a meeting with the company to discuss the company's previous announcement that it would restate certain financial statement.
The company said it intends to cooperate with both requests.
New Century warned Monday of a series of serious financial problems that cast its future in doubt - and cast a pall over much of the nation's financial sector.