SEC May Charge Mozilo of Countrywide With Fraud

By John Johnson,  Newser Staff
Posted May 13, 2009 8:48 PM CDT
Countrywide Financial Corp CEO Angelo Mozilo, in 2007.   (AP Photo/Ric Francis)
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(Newser) – The long slide from the top continues for former Countrywide chief Angelo Mozilo. Staffers at the SEC have recommended filing a civil suit against him on charges of fraud and insider trading, reports the Los Angeles Times. Countrywide had been the nation’s largest mortgage lender before it nearly went belly up last year and was acquired by Bank of America.

Mozilo denies wrongdoing, but private lawsuits accuse him of improperly selling his stock in the company as its fortunes tanked. He’s also accused of failing to tell shareholders of the company’s straits. Mozilo’s lawyers will have a chance to persuade the SEC’s five commissioners not to go ahead with the civil suit.