SANTA FE, N.M. (AP) – A federal jury has cleared two former executives of Thornburg Mortgage of five counts and could not reach a decision on five others.
The Securities and Exchange Commission filed a lawsuit in 2012, alleging that Thornburg leaders Larry Goldstone, Clarence Simmons III and Jane Starrett hid the company’s deteriorating financial condition at the start of the housing market collapse by issuing misleading statements.
They also were accused of hiding a $428 million loss in a 2007 annual report.
The Albuquerque Journal reports that Starrett reached a settlement with the SEC and agreed to pay a penalty.
As for Goldstone and Simmons, the SEC could retry the counts on which jurors couldn’t agree.
An attorney for the two says the verdict sends a message about the weakness of the case.