Former Countrywide Executives in Trouble with SEC

June 11th, 2009
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Last week, in a press release, the SEC revealed that former executives of Countrywide Financial, including former CEO Angelo Mozilo, will be charged with investor fraud and (in Mr. Mozilo’s case) insider trading. Mr. Mozilo stands accused of generating $140 million in profits, which he allegedly gleaned from exercising options using inside information. He and his fellow executives are also being accused of failing to report excessive risks involving bad mortgage loans to investors, in spite of Countrywide’s assurance that it only invested in prime mortgage loans. Mr. Mozilo himself described some of Countrywide’s assets as “toxic.” The firm had gradually widened its loan guidelines in order to compete, leading to large amounts of money invested in poor-quality mortgage-backed securities. The SEC seeks the recovery of the illegal profits, among other charges.

See Press Release
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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