Mozilo Charged with Fraud

As we noted last month, The Man with a Tan was charged with Fraud.

Former Countrywide Financial Corp. Chief Executive Officer Angelo Mozilo and two other people were accused of fraud by the U.S. Securities and Exchange Commission following an investigation of the firm’s role in the subprime mortgage crisis.

The agency will hold a press conference at 4 p.m. today in Washington to discuss the case, it said in a statement. The SEC may accuse Mozilo of withholding information from investors about the mortgage lender’s condition and selling shares based on inside information to avoid losses, people familiar with the matter said, requesting anonymity because the case isn’t public.

Mozilo, 70, is the most prominent executive targeted by U.S. regulators examining the subprime mortgage crisis. In April, the SEC reached a $2.45 million settlement with Michael Strauss, the former CEO of American Home Mortgage Investment Corp., over claims he understated loss reserves before the Melville, New York-based lender’s bankruptcy.

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Source:
Countrywide’s Mozilo, Two Ex-Executives Accused by SEC of Fraud
David Scheer and Karen Gullo
Bloomberg, June 4 2009
http://www.bloomberg.com/apps/news?pid=20601087&sid=al4QWAr2aHCs

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