SEC Recommends Civil Action Against Metris Companies

Posted On: July 14, 2005

Metris Companies Inc., one of the largest bankcard issuers in the United States, announced July, 12 2005 that it has received a Wells Notice from the U. S. Securities and Exchange Commission.  That means that the SEC staff will recommend bringing civil action against the company for possible violations of securities laws. The Wells Notice includes the company’s chief executive officer David Wesselink and its controller Mark Wagener.

The company stated that the SEC is investigating how the company accounted for loan losses in 2001, its valuation of certain loans, as well as other accounting issues.

The Wells Notice was disclosed in August 2003.  Metris, like any recipient of a Wells Notice, has a chance to respond prior to the SEC staff making a formal decision.

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