The Securities and Exchange Commission is vowing to press on with its civil fraud case against IndyMac's former chief executive after a judge upheld his own decision to whittle the government's claims.
U.S. District Judge Manuel Real of California's Central District ruled Monday that IndyMac and ex-CEO Michael W. Perry did not mislead investors when the bank omitted from a May 2008 SEC filing a supplemental — less favorable — ratio for weighting subprime assets that it had reported to the Office of Thrift Supervision.
Perry contended the OTS considered the bank to be well capitalized and had waived any requirement the bank report both benchmarks.
Real reached a similar ruling in July, but revisited the issue after the SEC asked him to reconsider. The SEC
SEC spokesman John Nester said in a statement Tuesday that Real's latest ruling "merely clarified a decision from earlier this summer." Still, he said, "We continue to look forward to trying our case against the firm's CEO and will continue to consider our options regarding the portion of the case that was dismissed."
Perry, who presided over the $32 billion-asset IndyMac before it was seized by the Federal Deposit Insurance Corp. in 2008, is expected to stand trial on the question of whether the bank failed to disclose details about an $18 million cash infusion from its holding company in the spring of 2008.
The SEC accuses Perry of backdating the capital contribution to make the bank appear to be well capitalized. Perry
"Mr. Perry looks forward to dispensing with this one remaining issue at trial," Perry's lawyer, D. Jean Veta, said in a press release following Monday's ruling.
In
For his part, Perry continues to contest the charges publicly. He wrote recently on a