Skip to: Content
Skip to: Site Navigation
Skip to: Search
THURSDAY, NOVEMBER 26, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


4

Countrywide's Mozilo Charged With Fraud

Mozilo, two others accused of fraud, misleading investors

Share

(Newser) – The SEC has charged former Countrywide chief Angelo Mozilo and two other former execs with civil fraud, the Wall Street Journal reports. The agency accuses them of insider trading and withholding information from investors about the condition of what was once the nation's largest mortgage company. They are the first executives to face charges connected to the subprime mortgage collapse, the Washington Post notes.

Mozilo, along with Countrywide's former chief operating and financial officers, "deliberately misled" shareholders, an SEC official says. The ex-chief allegedly reaped $140 million from insider trading, and the others helped paint a robust picture of Countrywide as it "buckled under the weight" of bad loans. Now owned by Bank of America, Countrywide itself faces multiple lawsuits for predatory lending.

A Countrywide employee, left, talks with a homeowner at the HOPE NOW Alliance Foreclosure Workshops in Miami Beach, Fla. The company is facing lawsuits for predatory lending.
A Countrywide employee, left, talks with a homeowner at the HOPE NOW Alliance Foreclosure Workshops in Miami Beach, Fla. The company is facing lawsuits for predatory lending.   (AP Photo/Lynne Sladky)
The SEC has filed civil fraud charges against Angelo Mozilo, founder and former CEO of Countrywide Financial Corporation.
The SEC has filed civil fraud charges against Angelo Mozilo, founder and former CEO of Countrywide Financial Corporation.   (AP Photos/Susan Walsh)
Countrywide Financial Corp CEO Angelo Mozilo in 2007.
Countrywide Financial Corp CEO Angelo Mozilo in 2007.   (AP Photo/Ric Francis)
Mozilo and two other execs have been sued for allegedly misleading investors about Countrywide's health.
Mozilo and two other execs have been sued for allegedly misleading investors about Countrywide's health.   (AP Photo/Kevork Djansezian, file)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.24.09
Murdoch and Microsoft: The Mice Are Trying to Roar
11.23.09
Books Are Bad for You
4 comments
VIEWING:
 
godawgs
Jun 4, 09 4:40 PM CDT
Good now maybe Barney Frank and Chris Dodd won't be to far behind.... Reply
Vote up! Vote down!
-4
IN RESPONSE:
Doctor_Zaius
Jun 4, 09 6:45 PM CDT
Yes, because it was all there fault that Bush's SEC let Countrywide and others go crazy.
Vote up! Vote down!
+2
rajanKazhmin
Jun 4, 09 5:56 PM CDT
Like cockroaches... For each one you see there are 10,000 more you don't. Reply
Vote up! Vote down!
+3
drlarrymitchell
Jun 4, 09 11:27 PM CDT
The guy looks like a leathery douchebag. Reply
Vote up! Vote down!
+2
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

11 Stories

 29-Year-Old SEC Honcho 
 Came From Goldman 

New COO Adam Storch did 'business intelligence' at connected Wall Street bank

Oct 16, 09 2:08 PM CDT
(Newser) - The first person named to the new chief operating officer position in the SEC’s enforcement division is a 29-year-old whiz kid who previously worked at uber-connected Goldman Sachs, Bloomberg reports. "Adam’s skill in technology systems, workflow process, and project management will greatly benefit the division," his... More »

MORE ABOUT:
fraud • Goldman Sachs • Bill Clinton • SEC • Federal government • COO • regulator • Securities and Exchange Commission • Adam Storch • chief operating officer • enforcement • Robert Khuzami

Madoff on Fooling SEC: 'Just Be Casual'

Ponzi schemer taped giving associates tips to dodge regulators

Sep 10, 09 5:11 PM CDT
(Newser) - The most important thing to remember if you want to fool the SEC is to act casual, Bernie Madoff told executives at Fairfield Greenwich Group. “You don't want them to think you're concerned about anything,” the Ponzi scheme mastermind said in a phone call taped in 2005, CNN ... More »

MORE ABOUT:
fraud • Massachusetts • federal investigation • finance • SEC • federal prison • SEC commissioners • Bernard Madoff • Fairfield Greenwich Group • Bernard L. Madoff Investment Securities • regulator • Securities and Exchange Commission

(Newser) - Pfizer will shell out $2.3 billion—a record for a health care fraud settlement—over deceptive marketing of its drugs, the Los Angeles Times reports. Pfizer and one of its subsidiaries marketed four drugs based on off-label uses specifically prohibited by the FDA. The settlement with the Justice... More »

MORE ABOUT:
Department of Justice • fraud • Health and Human Services • marketing • drug companies • Pfizer • civil lawsuits • Lyrica • fines • criminal prosecution • Bextra

11 Stories


All three to fight charges
Bloomberg

They misled, profited
CNNMoney


Business  •  Crime & Courts 
TwitterFollow @NewserBusiness on Twitter

 
fraud • Countrywide • civil lawsuits • Angelo Mozilo • Securities and Exchange Commission

from our news partners