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Ready Comments on Anchor BanCorp’s Fraud Case, Published In WSJ

Ready Comments on Anchor BanCorp’s Fraud Case, Published In WSJ

by Brittney Mitchell Wednesday, August 28, 2013

Wisconsin School of Business Professor and Academic Director of the Hawk Center for Applied Security Analysis Mark Ready was recently quoted in the Wisconsin State Journal, commenting on the U.S. Securities and Exchange Commission’s (SEC) settlement of a fraud case against Anchor BanCorp. 

On August 14, the company and its former chief financial officer were accused of fraud in a civil lawsuit brought by the SEC. Auditors found problems in the way Anchor BanCorp accounted for its large amount of bad loans. The company was found to have not changed their expected loss to bad loans from the quarter that ended in March 31, 2009—a $4 million gap. Further, it was found that the CFO ignored another $7.4 million that should have been included in a reserve account for loan losses. 

As a former chief economist for the SEC, Ready commented on the filing delay for the complaint, as well as the SEC’s dual announcement of the complaint and the settlement, noting that neither was a surprise due to case’s small size. 

Ready is the chair of the Finance, Investment, and Banking Department at the school. His research focuses on investments and has been cited in more than 450 scholarly articles. He worked at the SEC from April 2000 through January 2001.