Oh, New Century…What a wicked web you weave…

The new word in the securities fraud cover-up banter is “ministerial” – and so very far from the truth.

On April 2, 2007, New Century Financial Corporation and its related entities filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court, District of Delaware and is currently heard and administered by the Honorable Kevin J. Carey.

With the filing of bankruptcy, New Century took down a list of affiliate / entities including New Century Mortgage Corporation, Home123 Corporation, New Century Mortgage Ventures, Midwest Home Mortgage, among a host of others. New Century was one of the largest subprime lenders in the boom times. It grew from only $357 million in loan originations in 1996 to over $56 billion in 2005. New Century Financial Corporation listed liabilities of more than $100 million. On May 25, 2007, they filed their form 8-K, a day after stating that they “…probably overstated 2005 earnings.” Ya think?

On March 26, 2008, an unsealed report by bankruptcy court examiner Michael J. Missal outlined a number of “significant improper and imprudent practices related to its loan originations, operations, accounting and financial reporting processes,” and accused auditor KPMG with helping the company conceal the problems during 2005 and 2006. The full report is strangely missing, but you may click here for a partial report.

Be sure to check out the rest here…