New Century says accounting errors being probed

NEW YORK, March 2 (Reuters) - New Century Financial Corp. NEW.N, one of the largest U.S. subprime lenders, said on Friday U.S. prosecutors in California told the firm earlier this week they are conducting an investigation in connection with trading in its securities.

The criminal investigation also covers accounting errors regarding the money the company sets aside to cover certain loans it is forced to buy back at a loss, New Century said in a filing, adding it had agreed to assist the investigation.