Met Mortgage

A year ago, federal authorities struck against former executives of Metropolitan Mortgage & Securities Co.

The U.S. Securities and Exchange Commission filed sweeping lawsuits alleging accounting fraud. A federal grand jury in Seattle indicted an executive on seven criminal counts, and a Portland grand jury indicted a pair of brokers on 35 charges.

At the same time, bankruptcy lawyers in Spokane were pushing through a payback plan, while Metropolitan hired top-notch lawyers to go after its former accounting firms.

It’s likely that blame and questions of criminality surrounding the collapse of the $2.3 billion financial conglomerate that wiped out the investments of more than 10,000 people will be resolved next year, as long-awaited trials unfold and lawyers hasten settlement talks.

Metropolitan debenture holders collected 9 cents on the dollar last month, and those holding debenture bonds issued by Metropolitan affiliate Summit Securities Inc. received about 6 cents on the dollar.

Investors can expect a second mailing of checks in 2007 as the company’s half-dozen employees continue to sell assets.