A look at companies that face, or settled, federal charges in aftermath of financial crisis

Companies facing federal charges in wake of crisis

The government has launched a variety of civil and criminal cases against financial companies in the wake of the housing market’s collapse and ensuing banking crisis.

Charges haven’t yet come in many of the probes. But on Friday the Securities and Exchange Commission accused Goldman Sachs & Co. of defrauding investors. The SEC’s civil complaint says Goldman failed to reveal that one of its clients helped create — and then bet against — subprime mortgage securities that Goldman sold to other investors.

The SEC said Goldman’s fraud was orchestrated in 2007 by a vice president then in his late 20’s. Fabrice Tourre has since been promoted to executive director of Goldman Sachs International in London.

Here’s a look at other companies that face, or have settled, charges:

— American Home Mortgage Investment Corp.: Michael Strauss, formerly chairman and CEO of the collapsed mortgage company, agreed to pay nearly $2.5 million to settle federal civil charges last April. The SEC charged him with concealing the company’s deteriorating finances as the subprime mortgage crisis hit in 2007.

— Bear Stearns Cos.: Two former hedge fund executives, Ralph Cioffi and Matthew Tannin, were acquitted last year of conspiracy and other charges in an alleged scheme that cost investors about $1.6 billion. The SEC has sued the two Bear Stearns executives in a civil action, and that case is still pending.

— Bank of America Corp.: A federal judge in February approved a $150 million settlement between the SEC and BofA. The agency had filed civil charges last year accusing the bank of misleading shareholders when it acquired Merrill Lynch in September 2008. Regulators said BofA failed to disclose that it had authorized Merrill to pay bonuses to top executives even though the company had lost billions.

— Countrywide Financial Corp.: The SEC charged Angelo Mozilo, the company’s former CEO, with civil fraud and illegal insider trading last July. Regulators accused him of deceiving shareholders and profiting on confidential information. The civil lawsuit also named two other top executives, David Sambol and ex-chief financial officer Eric Sieracki. Bank of America purchased Countrywide in 2008.

— Credit Suisse Group Inc.: A federal jury in New York last August convicted former broker Eric Butler of conspiracy and securities fraud charges in connection with a $1 billion subprime mortgage fraud. A former colleague pleaded guilty and testified against Butler.

— New Century Financial Corp.: The SEC filed civil fraud charges against three former executives of the subprime mortgage lender, including former CEO and co-founder Brad Morrice, in December. The agency said they misled investors and inflated profits as the company’s subprime loan business was failing.The company collapsed in early 2007.