Los Alamos National Bank, former exec settle SEC fraud case for $1.5M
Los Alamos National Bank and its former chief executive have agreed to pay more than $1.5 million in fines to settle allegations of civil accounting fraud regarding loans that dropped in value during the recession.
The U.S. Securities and Exchange Commission brought the case against Trinity Capital Corp., the holding company for the bank. The allegations date back to annual financial reports in 2010, 2011 and 2012.
“Specifically, Trinity understated its reported 2011 net loss available to common shareholders by $30.5 million, reporting income of $4.9 million instead of a $25.6 million loss,” The SEC said in a statement this week.
“Trinity was facing dire financial straits but rather than accurately report its losses, we allege that the firm’s executives grossly misreported its income to shareholders and regulators,” said Andrew J. Ceresney, director of the SEC’s Division of Enforcement. “We will hold senior executives liable when they misstate the company’s performance and fail to come clean with shareholders.”
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