With once-broad allegations stripped away in a series of pre-trial rulings, the U.S. Securities and Exchange Commission has agreed to settle its fraud suit against the former CEO of failed thrift IndyMac for $80,000.
The SEC in 2009 alleged that Michael Perry misled investors by issuing false statements about the health of the mortgage lender, which failed in 2008. But in recent months, Los Angeles federal district judge Manuel Real dismissed all charges but one - whether a capital contribution was properly disclosed - on summary judgment.
Perry agreed to settle a single negligence-base claim without admitting or denying the allegations, and to obey securities laws in the future. The SEC agreed to accept the court's prior rulings and forego any appeals.
"I think the court's rulings speak for themselves," said Perry's lawyer, Covington & Burling partner D. Jean Veta, in a news release. "Despite significant reluctance, Mr. Perry had long tried to resolve this case on reasonable terms. It just so happens that we needed to score some victories before the SEC was of a similar mind."
The case was set for a bench trial on Oct. 23. IndyMac's former chief financial officer S. Blair Abernathy, who was also sued by the SEC, immediately settled his case in 2009 and agreed to pay $125,000. Another co-defendant, IndyMac's prior chief financial officer A. Scott Keys, was dismissed from the case in May.