On Wednesday, the SEC suffered its first trial setback in its FY 2016 federal court trials. Following a trial in the U.S. District Court for the District of New Mexico, a jury reportedly found against the SEC and in favor of two former executives of Thornburg Mortgage (now known as TMST Inc.)on five counts and was unable to reach a verdict on five others.
In 2012, the SEC sued Thornburg’s CEO Larry A. Goldstone, CFO Clarence G. Simmons, III, and chief accounting officer Jane E. Starrett alleging fraudulent misrepresentations and omissions about Thornburg’s financial condition, margin call activity, and liquidity. On June 1, 2016, Starrett settled the SEC’s case against her, but Goldstone and Simmons took their cases to trial.
