SEC: Mozilo to be Charged with Insider-Trading

May 13, 2009 8:09pm by Barry Ritholtz

Now how about this:

“The Securities and Exchange Commission staff is readying civil fraud charges against Countrywide Financial Corp. co-founder Angelo Mozilo, in what would be the highest-profile government legal action against a chief executive connected to the financial crisis.

The SEC sent a so-called Wells notice to Mr. Mozilo several weeks ago alerting him to the potential charges, people familiar with the matter said. Mr. Mozilo’s lawyers could still persuade the SEC’s commissioners that there isn’t sufficient evidence to bring a case. . .

The charges the SEC is considering include alleged violations of insider-trading laws and alleged failure to disclose material information to shareholders, according to one person familiar with the matter.

Mr. Mozilo sold $130 million of Countrywide stock in the first half of 2007 under an executive sales plan, according to securities filings, compared with $60 million in the year-earlier period. He had modified his prearranged plan in late 2006 to accelerate the sales.

What corporate bankster that contributed to the entire mess is next up on the perp walk?

Source:
SEC Ready to Charge Mozilo With Fraud
KARA SCANNELL and JOHN R. EMSHWILLER
WSJ, MAY 14, 2009
http://online.wsj.com/article/SB124224647957816523.html

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