U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23309 / July 21, 2015
Accounting and Auditing Enforcement Release No. AAER-3671 / July 21, 2015
Securities and Exchange Commission v. Thomas S. Wu and Thomas T. Yu, Civil Action No. 11-cv-4988 JSW (N.D. Cal. Filed Oct. 11, 2011)
SEC Settles Civil Action Against Former Senior Vice President Arising from His Role in Understating Bank Losses During Financial Crisis
The Securities and Exchange Commission announced today that on July 10, 2015 the United States District Court for the Northern District of California entered a final judgment against Thomas Yu, a former Senior Vice President at United Commercial Bank, a wholly owned banking subsidiary of UCBH Holdings, Inc., a publicly-traded holding company. The Commission's complaint alleges that Yu and other defendants concealed losses on loans and other assets from the bank's auditors and delayed the proper reporting of those losses. The Commission's complaint further alleges that Yu committed securities fraud by causing UCBH to materially understate losses in connection with its 2008 annual report and misleading the bank's independent auditors, among other allegations.
Yu consented to the entry of a final judgment that permanently enjoins him from violating Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and Section 17(a) of the Securities Act of 1933, and from aiding and abetting violations of Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, and 13a-11 thereunder. The judgment also bars Yu from acting as an officer or director of a public company.
In a parallel criminal proceeding, Yu pleaded guilty on October 7, 2014 to one count of conspiracy to commit false bank entries, reports and transactions.