SEC investigates Better.com for alleged federal laws violation
2022.07.15 03:12
FILE PHOTO: People exit the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) – The U.S. Securities and Exchange Commission (SEC) is examining whether mortgage lender Better.com and the special purpose acquisition company it has agreed to merge with, Aurora Acquisition Corp, violated federal securities laws.
In the second-quarter of 2022, the regulator asked Better.com and Aurora Acquisition to submit some documents related to their business activities, Aurora said in a filing on Thursday.
Better.com and Aurora are cooperating with the SEC, the blank check company added.
The SEC requests, cover among other things, information on the business transactions of Chief Executive Officer Vishal Garg and allegations made in a lawsuit against him filed by Sarah Pierce, Better.com’s former head of sales and operations.
Last month, Pierce filed a lawsuit claiming that Garg misrepresented Better.com’s statements to ensure investors go through with a SPAC merger instead of withdrawing due to its financial condition.
Better.com did not immediately respond to Reuters’ request for comment, while SEC declined to comment. Aurora Acquisition Corp, too, declined to comment beyond the filing.
