On Tuesday the Securities and Exchange Commission (SEC) announced a settlement with former American Home Mortgage Investment Corp. Chairman, Chief Executive and company founder Michael Strauss. He has agreed to pay close to $2.5 million to settle federal charges of accounting fraud and concealing the company’s deteriorating finances as the subprime mortgage crisis began gaining momentum.

Michael Strauss is not the only one in the company accused of charges. Stephen Hozie the company’s former Chief Financial Officer (CFO) was also accused of accounting fraud and misleading investors. The charges are still pending.

Strauss, Hozie and former controller Robert Bernstein are also accused by the SEC of misleading American Home’s auditors about the company’s reserves against losses on mortgages.

According the an SEC official the executives were major players in the national mortgage meltdown.