Erin Callan (Erin Callan news) tried to start a new life away from the harsh glare that was so unkind to her on Wall Street. But can she escape the consequences of her ill-fated stint as chief financial officer at Lehman Brothers (Lehman Brothers news)? Will the demise of the firm suck her back into the vortex of retribution and criminal charges--like Michael Corleone in The Godfather III--even as her former boss and friend Richard Fuld (Richard Fuld news) is spared? The human drama here is riveting.

FOX Business reports that officials at the SEC agency "have begun to delve into Callan's actions during the first quarter of 2008," when the firm reported modest earnings as other firms began to announce losses due to toxic assets. It was around this time that short sellers began to heap skepticism onto the company and Callan's specifically.

The SEC (SEC news) is said to be looking at Callan's "emails in late 2007 and early 2008, and interviewing witnesses, trying to determine if her public defense of the firm matched what she believed privately, these people say. At issue for investigators: whether Callan's 'forward looking statements' about the firm's finances and that the firm would survive the crisis constitute civil fraud."

The stakes are high. And plenty of people are chagrined that no one from Lehman Brothers was ever charged. 

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