WASHINGTON (CN) - Capital One and two top officers will pay $3.6 million to settle charges of lying about millions of dollars of losses on auto loans, the SEC said.
The SEC filed a cease-and-desist order with penalties against Capital One Financial Corp., its former chief risk officer Peter A. Schnall and former divisional credit officer David A. LaGassa.
All three settled with the SEC. Capital One agreed to pay $3.5 million, Schnall $85,000 and LaGassa $50,000. As is customary with the SEC, none of them had to admit they did anything wrong.
They were accused of understating millions of dollars of losses in auto finance in the runup to the financial crisis that began in late 2007.
"Capital One failed to properly incorporate these internal assessments into its financial reporting, and thus understated its loan loss expense by approximately 18 percent in the second quarter and 9 percent in the third quarter," the SEC said in a statement.
Capital One's slogan, for its credit cards, is "What's in your wallet?"
It has been sued more than 1,500 times in the past 3 years, according to the Courthouse News database. It has sued more than 1,500 of its customers in the same period.
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