The company is one of the many sub-prime lenders who went bankrupt when the sub-prime mortgage market bubble burst sending the economy down. Subject of a lawsuit, the company has been found to have not taken enough measures to assure the accuracy of its financial records. They are accused of following non-standardized accounting practices which led to false data reaching Wall Street giving the market a false sense of security. The independent auditor which New Century employed to handle its books also failed to detect the abnormalities in the financial reports sending it certified to be accurate to Wall Street. The company and it’s executives are facing prosecution for violating many accounting laws and may have to answer for more financial problems.

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