The Securities and Exchange Commission is investigating a deal between Carrington Holding Company and New Century Financial seven years after the deal was made, the New York Times reports.
The agency is scrutinizing the hedge fund section of Carrington’s purchase of bankrupt subprime lender New Century’s mortgage-servicing business in 2007. Last fall the SEC began to subpoena documents from Carrington about the purchase in an attempt to find out more information about how Carrington financed the $188 million deal, which partly relied on the firm later issuing special securities to investors in its hedge fund, the New York Times reports.
