Metropolitan Mortgage - Special coverage at The Spokesman-Review

News > Business

Met creditors want to sue accounting firm

Sat., Aug. 21, 2004

Creditors in the Metropolitan Mortgage & Securities Co. bankruptcy case want to hire a law firm by next month to sue the big accounting firm Ernst & Young LLP, the creditors' lawyer said in a hearing Friday. Stung by the realization that assets such as property and notes might only be enough to return 15 cents on the dollar, creditors have pinned their hopes on a legal theory that Ernst & Young failed in its watchdog role as Metropolitan's auditor.

News > Business

Small Met recovery possible

Fri., Aug. 20, 2004

Investors in bankrupt Metropolitan Mortgage & Securities Co. could recover as little as 15 cents on the dollar, a devastating loss of wealth for the thousands of people who entrusted their savings to a company that's now plagued by accounting scandals and federal investigations. The executive hired from outside to run Metropolitan after it filed for bankruptcy protection said Thursday the recovery depends on the successful sale of notes and property, especially beachfront lots in Hawaii that could be worth tens of millions.

News > Business

Investors worry as Met faces millions in legal fees

Sat., Aug. 14, 2004

Costs in the Metropolitan Mortgage & Securities Co. Inc. bankruptcy are piling up, even as creditors worry about recovering at least some of their investments. In the first part of the year, lawyers, accountants and advisers who are working to unravel the financial mess have charged the company about $4 million, according to records filed in U.S. Bankruptcy Court in Spokane. And they will get paid before anyone else.

News > Business

Met exec quits, says he was “misled’

Wed., July 21, 2004

The man who some describe as the internal whistle-blower at Metropolitan Mortgage & Securities Inc. has resigned to accept a job closer to home in California. Metropolitan gave him no hint of the company's impending financial troubles when he was hired Aug. 4, 2003.

News > Business

Met Mortgage to abandon Pasco project

Thu., July 15, 2004

Metropolitan Mortgage & Securities Inc. will abandon a multimillion-dollar mall project in the Tri-Cities. The bankrupt Spokane firm owes more money on the factory outlet mall than what appraisers say the entire project is worth.

News > Spokane

City Hall won’t be in Met tower

Fri., July 9, 2004

Spokane Mayor Jim West said Thursday that the city is no longer interested in buying the Metropolitan Financial Center. Facing a budget crunch and skeptical voters, the city is just not ready to embark on such a bold proposal as buying the 17-story white high-rise in downtown Spokane and moving City Hall there, he said.

News > Spokane

Examiner wants closer look at Metropolitan’s auditors

Thu., July 8, 2004

A court-appointed examiner wants to continue investigating Metropolitan Mortgage & Securities Inc.'s collapse. Specifically, examiner Samuel Maizel wants to scrutinize the work of Ernst & Young LLP, and PriceWaterhouseCoopers LLP – deep-pocketed accounting firms that for years signed off on questionable bookkeeping at Metropolitan.

News > Spokane

Met selling properties to repay investors

Thu., June 10, 2004

Metropolitan Mortgage & Securities Inc. is selling all of its properties to repay investors as executives wind down the company's 50-year business run in Spokane. The sales include everything from Metropolitan's 17-story headquarters in downtown Spokane to ocean-front lots in Hawaii.

News > Business

‘Rabbit transactions’ fueled Met’s demise

Wed., June 9, 2004

Investors burned by unscrupulous sales practices and fraudulent financial reports at Metropolitan Mortgage & Securities Inc. may find payback by reaching into the deep pockets of prestigious accounting firms and wealthy former executives, according to a court-ordered investigation. Special examiner Samuel Maizel sharply criticized Ernst & Young LLP for auditing practices that failed to reveal a doomed company.

News > Business

Bortner out as chief of state securities office

Tue., May 11, 2004

Deborah Bortner, the state's securities chief and a tenacious critic of Metropolitan Mortgage & Securities Inc., has been demoted as part of a political shake-up. As head of the securities division within the Department of Financial Institutions, for the past 10 years she's been the state's top cop investigating investment scams, crooked stockbrokers and the wrongdoings of major investment firms. Bortner said her style clashed with that of Helen Howell, the director of the DFI, who was appointed by Gov. Gary Locke 20 months ago.