K&L Gates : Newsstand : K&L Gates Partner Michael Missal Files Final Report in New Century Bankruptcy Investigation

K&L Gates Partner Michael Missal Files Final Report in New Century Bankruptcy Investigation

March 26, 2008

Washington, D.C.— The Final Report in the bankruptcy proceedings of subprime loan specialist New Century Financial Corp., filed by Kirkpatrick & Lockhart Preston Gates Ellis LLP (K&L Gates) partner and court-approved Examiner Michael J. Missal on February 29, 2008, was unsealed today by the United States Bankruptcy Court for the District of Delaware. Concluding an eight-month investigation that began with the U.S. Department of Justice’s appointment of Missal as Examiner in June 2007, the 550-page report covers New Century’s accounting and financial reporting practices, loan origination operations, audit committee and internal audit department, and system of internal controls. The Final Report also identifies possible causes of action that may be available to the New Century estates.

The full text of the Final Report, as well as Missal’s First Interim Report from November 2007 detailing the post-petition unauthorized use of cash collateral by New Century, can be accessed by clicking the links below.

Final Report, February 2008 (36 MB PDF file)
First Interim Report, November 2007

A former Senior Counsel for the SEC’s Division of Enforcement, Missal joined K&L Gates in 1987 and focuses his practice on internal investigations and securities enforcement matters. In addition to his role in the New Century investigation, Missal has served as Lead Counsel to the Examiner in the WorldCom bankruptcy proceedings and Lead Counsel to the Independent Review Panel for CBS investigating the September 2004 “60 Minutes” segment concerning President Bush’s Texas Air National Guard Service.

Contacts:
Michael J. Missal, +1.202.778.9302, michael.missal@klgates.com

K&L Gates comprises more than 1,500 lawyers in 24 offices located in North America, Europe and Asia, and represents capital markets participants, entrepreneurs, growth and middle market companies, leading FORTUNE 100 and FTSE 100 global corporations and public sector entities.