Invested in
Hanmi Financial?
Attention Hanmi Financial shareholders: contact investor lawyers for a free evaluation of your potential claims for compensation today.
- Did you invest or became a shareholder in Hanmi Financial Corporation (NASDAQ: HAFC) in or before August 2018 and still hold your Hanmi shares?
- Are you concerned about reports alleging misrepresentations and omissions concerning the company’s income and exposure to a troubled $40 million loan?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
Contact Us About Your
Investments
Free Case Evaluation
The Hanmi Financial Class Action Investigation page is the resource for investors who bought Hanmi Financial shares in or before August 2018 and would like to evaluate compensation claims.
- Free Case Evaluation
- No Fees if No Recovery
- Contact Us Today
We can also do a Zoom call to discuss your matter.
Posted April 12, 2023
Hanmi Financial Investigation
Securities attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner have been investigating alleged securities violations, corporate misconduct, and misrepresentations, as well as questionable business practices involving Hanmi Financial Corporation, and have identified potential areas of concern for Hanmi Financial investors.
What Hanmi Financial Investors May Do
HAFC investors interested in evaluating potential options to seek compensation and/or pursue claims related to their Hanmi Financial investment may contact investor rights attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca, Scarlato, and Weidner have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct, and are currently evaluating potential claims on behalf of investors in Hanmi Financial Corporation
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned HAFC stock investors may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Was Hanmi Financial Sued for Misconduct?
Hanmi Financial Corporation, its former Chief Executive Officer (“CEO”) C.G. Kum, its President, CEO, and Director, Bonita I. Lee, and its Chief Financial Officer and Senior Executive Vice President, Romolo C. Santarosa, have been the subject of a class action lawsuit, filed in the United States District Court for the Central District of California, that is currently pending.
Hanmi Financial and its control persons were accused, among others, of violating securities laws by allegedly making materially false and/or misleading statements and failing to disclose material adverse facts that allegedly caused Hanmi’s stock to trade at artificially inflated prices.
The amended complaint alleged that Hanmi allegedly misrepresented the company’s asset quality metrics and overstated the company’s income by concealing over $40 million in non-performing loans and over $25 million in loan losses.
What Happened to Hanmi’s Stock Price?
In March 2016, the company reportedly lent $41.2 million to a developer who was building an office tower in Santa Ana, California, and used the undeveloped land as collateral. Three years later Hanmi Financial filed lawsuits alleging the borrower defaulted “four times” between March 2018 and January 2019, the amended class action complaint indicates. According to the filings, unbeknownst to investors, Hanmi allegedly negotiated a series of concessions to restructure the nonperforming loans, including extending the maturity date, issuing another loan to pay off the initial loan, and reducing the interest rate.
For several years Hanmi Financial allegedly failed to disclose any information about the loan, its purpose, the borrower or the fact that the collateral was worth only a fraction of the loan. In July 2019 Hanmi Financial filed a 8-K report informing investors it dismissed its independent accounting firm, and a few days later the company filed a Notice of Late Filing disclosing that Hanmi is “unable to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 (“Form 10-Q”) with the Securities and Exchange Commission within the prescribed time period (…) because the Company and its auditor are evaluating the classification of a single $40.7 million credit relationship (comprised of a $28.0 million construction loan and a $12.7 million business loan) and the related adjustment to the allowance for loan and lease losses that could affect the financial statements to be included in such Form 10-Q, as well as a possible internal control deficiency primarily relating to construction lending, which may affect prior periods.” Ten days later the company received a notice from Nasdaq informing Hanmi was no longer conforming with the rules and ran the risk of being delisted.
In the Form 10-Q filed in October 2019, Hanmi Financial disclosed that the value of the total impaired loans and leases increased 163.4% “principally due to the addition of a $40.7 million loan relationship comprised of a $27.9 million land loan and a $12.8 million business loan.” The report further classified the load as “troubled debt restructuring” and announced an increase in the provision for loan and lease losses resulted “principally from a $15.7 million specific allowance relating to a $40.7 million loan relationship added to nonaccrual loans in the 2019 second quarter.” The provision was further increased until it reached $25.2 million according to an April 2020 report filed by the company.
A few weeks later, Hanmi’s reportedly long time Chief Risk Officer announced her departure.
Following the series of news the HAFC stock price dropped in value, reportedly declining 60% by May 1, 2020, the complaint alleged.
Do Hanmi Financial Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca, Paul Scarlato, and Kathryn Weidner at Rosca Scarlato are investigating potential options and are evaluating potential claims for compensation on behalf of HAFC shareholders. They have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Hanmi Financial investor concerned about your investment and/or its value, you may contact attorneys Alan Rosca, Paul Scarlato, or Kathryn Weidner to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Hanmi Financial investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Hanmi Financial Class Action Investigation page is not affiliated with Hanmi Financial Corporation. There has not been an adjudication on the merits of the cases referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Kathryn Weidner – kweidner@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
