Relief Obtained in MCA Financial Fraud Case

Defendants were former top executives of MCA Financial Corporation, charged with engaging in a fraudulent scheme with respect to two different types of securities. They allegedly sold $71 million of securitized interests in pools of mortgage loans from 1994 through 1999 while knowingly misrepresenting the risk, rate of return and historical performance of the interests. In the same time period, they also allegedly engaged in the fraudulent sale of $19 million in debentures between 1994 and 1999 by including financial statements that materially inflated its assets, income and equity in registration statements and annual and quarterly reports. Combined losses of nearly $70 million. Defendants received prison sentences.