SEC charges former executives of subprime auto lender with securities fraud over alleged double-pledging scheme

On August 18, the SEC announced that it filed a complaint against three former leaders of a Texas-based “subprime” auto lender, claiming that the defendants committed securities fraud by allegedly double-pledging hundreds of millions of dollars in auto loans to multiple asset-backed securities (ABS) offerings and warehouse lenders as part of a purported scheme preceding the company’s collapse.... By: Orrick, Herrington & Sutcliffe LLP