SEC v. James R. Collins and Robert F. DiMeo

James R. Collins and Robert F. DiMeo allegedly made false and misleading statements about, and engaged in deceptive conduct regarding, Honor Finance, LLC's servicing practices. According to the SEC's complaint, Collins and DiMeo took various steps designed to artificially inflate the value of the collateral underlying HATS, including loans that were not eligible to be included in the securitization vehicle, extending loan repayment dates without borrower knowledge, and forgiving payments due from delinquent borrowers. Because of these improper practices, the servicing and performance information Honor provided to investors at the time of the offering and in later monthly reports was allegedly false.

Summary generated from official Securities and Exchange Commission press release