SEC v. Mark T. Turkcan

SEC Complaint against Mark T. Turkcan


The Complaint alleges that Turkcan carried out a scheme of secretly obtaining money from third-party brokerage firms through the surreptitious use of repurchase transactions, which are essentially collateralized loans, and improperly disguising the money obtained from those transactions as gains from trading mortgage-backed securities.

According to the complaint, Turkcan circumvented First Banks, Inc.'s internal controls and concealed his scheme by lying to his staff and his superiors, falsifying and fabricating documents, and providing false and misleading information to First Banks, Inc. and its outside auditor.

The Commission further alleges that as a result of Turkcan's scheme, First Banks, Inc. incurred an undisclosed obligation of approximately $35 million and materially misstated its net income in filings with the Commission.

The complaint alleges that as a result of Turkcan's scheme, On July 30, 2008, First Banks, Inc. restated its financial results for the years 2005 through 2007 and disclosed that it had discovered material misstatements in its financial statements arising out of the circumvention of established internal controls and material weaknesses in its internal controls over financial reporting.

The Commission's complaint charges Turkcan with violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1, and 13b2-2 thereunder, and aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder.

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Reference Info:Pleadings | Federal, 8th Circuit, Missouri | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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