TMST Execs File Motion, Seek End to SEC Litigation

Two executives from the company formerly known as Thornburg Mortgage on Aug. 9 filed a motion for summary judgment seeking to end their litigation with the Securities and Exchange Commission, which includes claims they made certain false statements and engaged in a scheme to defraud their auditor.

The two executives, TMST Inc.’s  former CEO Larry Goldstone and former chief financial officer Clarence G. (Clay) Simmons III, in their motion seek to demonstrate that “the SEC’s remaining claims have no basis in fact.

“This motion sets out undisputed evidence and sworn testimony that definitively refutes all of the SEC’s theories of liability in this matter,” they said in an Aug. 9 press release.

The executives said, “The accounting and auditing issues at the center of the SEC’s allegations were handled candidly, openly and properly by management, something KPMG’s own contemporaneous work papers and internal reports corroborate.”

TMST “was forthcoming and transparent in its disclosures” to both the investing public and its auditors, according to the press release, which also said that company’s auditor “had in its possession all facts” when it completed its audit of TMST’s financial statements.”

An SEC spokesperson declined to comment.