Though it's been pretty clear for almost a year now that deals from Spiegel Inc.'s banking subsidiary, First Consumers National Bank, were underperforming, news emerged last week from an independent examiner appointed by the Securities and Exchange Commission that the company was manipulating the performance of its securitizations to avoid an early amortization.

Additionally, forensic accounting specialists Kroll, Zolfo & Cooper LLC allege that FCNB deliberately misled investors about its credit underwriting practices and failed to disclose the use of recency accounting, which significantly reduced delinquencies the portfolio was experiencing.

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