October 4, 2010
Gentlemen,
I have completed a Preliminary Findings Report for a whistleblower complaint; however, I am not sure whether I qualify as a whistleblower because I have never been an employee of the targeted entities. In additional to guidance that I have already reviewed at the SEC's website, please direct me to any whistleblower guidance and/or existing rules that will answer my whistleblower eligibility question and, if I am eligible, will further assist me to submit my findings to the U.S. Securities and Exchange Commission (the "Commission").
Many of the targeted entities of the proposed whistleblower complaint are currently seeking a global settlement of a class-action lawsuit by former shareholders against the directors and officers of New Century Financial Corporation, KPMG LLP et al.; or part of the Commission's settlement with three former New Century executives - Chief Executive Brad Morrice, Chief Financial Officer Patti Dodge and Controller David Kenneally (see attachment). The hearing for the class-action lawsuit to consider final approval of the $125 million settlement is scheduled for November 8, 2010 - therefore, time is of the essence. The case is In re: New Century, U.S. District Court, Central District of California, No. 07-00931.
The proposed whistleblower complaint expands the number of defendants beyond those cited in the shareholder class-action lawsuit and three former New Century executives. Further, the plaintiffs include the certificate holders of nearly $80 billion in securitizations issued by various targeted entities where New Century was the mortgage loan originator during the period from October 1, 2005 through September 30, 2007. The proposed whistleblower complaint also contains a recommendation for elective criminal referrals to the U.S. Attorney's Office and the Department of Justice.
Thank you in advance.
Jerome A. Champion, Certified Fraud Examiner
255 South Grand Avenue, Suite 402
Los Angeles, CA 90012