Deerfield Capital Corp. (DFR)

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Deerfield Capital Served Wells Notice From SEC

- Update 6/8/2010 8:41 AM ET
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(RTTNews) - Tuesday, Deerfield Capital Corp. (DFR: News ) said that it received a "Wells notice" from the Securities and Exchange Commission or SEC. The regulatory authority has been investigating certain mortgage securities transactions of the company. The notice stated that SEC will bring an enforcement proceeding against the company on its transactions effected in 2005 and 2006.

DFR said that it intends to respond to the notice and explain why it believes those charges are unwarranted.

As disclosed earlier, the mortgage securities transactions was effected by Deerfield Capital Management LLC or DCM, now DFR's indirect wholly-owned subsidiary. The transactions involved real estate mortgage investment conduits or REMICs and re-REMICs, and the accounting for those transactions.

The company said enforcement proceeding against DFR is for possible violations of certain sections of the Securities Act of 1933, Securities Exchange Act of 1934 and the Investment Advisers Act of 1940 against DFR as successor-in-interest to DCM.

DFR closed Monday's regular trading session at $5.11.


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