Countrywide CEO settles with SEC
Angelo Mozilo agrees to pay $67.5 million to settle civil fraud charges with the SEC stemming from the subprime mortgage crisis. Two other executives also settle.
Countrywide was once the nation's largest mortgage lender but ran into deep trouble when it started making thousands of subprime mortgages that went bad. The company was sold to Bank of America (BAC) in 2008 and renamed Bank of America Home loans.
The two other defendants in the case, former Countrywide President David Sambol and former Chief Financial Officer Eric Sieracki, also settled with the SEC.
Sambol agreed to pay just over $5.5 million in penalties while Sieracki agreed to pay $130,000.
The settlements, whose likelihood was first reported in The Wall Street Journal Thursday, came only days before the start of a jury trial in federal court here on the case.
As is typical of a settlement, all three defendants, who reached the settlements without admitting or denying wrongdoing, also agreed to injunctions against future violations of securities law.
Additionally, Mozilo agreed to a permanent ban on serving as an officer or a director of a public company. Sambol agreed to a three-year ban.
Of Mozilo's total, $22.5 million was in civil penalties and $45 million in disgorgement, or potential returns to investors. Of Sambol's total, $5 million represented such repayments.
In a suit filed last year, the SEC accused the three defendants of hiding from the public growing problems in Countrywide's portfolio of risky loans.
Those problems eventually led to Countrywide's sale to Bank of America in 2008.
Bank of America wasn't involved in the SEC suit, but is paying the entirety of Sambol's $5 million disgorgement, The Journal said.
It couldn't be immediately determined whether Bank of America would be covering any of Mozilo's $45 million in disgorgement. The SEC also accused Mozilo of insider trading in his sale of nearly $140 million of Countrywide stock.
The SEC's Countrywide case is one of the biggest federal enforcement actions to yet surface out of the 2008 meltdown of the nation's financial markets. The settlements were disclosed at a court hearing here Friday before Judge John Walter, who was presiding over the case.
The case was go to trial on Tuesday, and settlement talks heated up this week.
The trio had a good reason to settle: A lengthy trial held the potential for surfacing information that could be damaging to three men in relation to the criminal probe, observers told The Journal today.
Losing the SEC cases could influence a possible future criminal jury and also hurt their efforts to defend private civil suits brought in the wake of Countrywide's woes.
that frikkin moziloasshole should be frikken :waterboarded, like his ------- bed partners bushy and dick-da-**** cheney!!!!!!!!!!!!!!!!!!!!!!! those three stooges should be hung!!!!!!!!!!!!!!!! got it????? i thought so folks!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Mozilo, who helped found the company in 1969, was charged with selling shares in the company without disclosing the company's rapidly declining financial health.
Something is very wrong with this result. Why arent they going after the Congress that pushed them into the SUBPRIME market, or seized the company and along with Fannie/Freddie turned them over to someone that can communicate with mortgage holders and solve the problem without crashing the world economies???
Me thinks SEC is protecting the Obama-ites who were paid off by campaign donations from Fannie/Freddie!!!
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
LATEST MARKET DISPATCHES
- No more Dispatches; here's where to find market news
The Market Dispatches column has been discontinued. Here's where to find the latest stock and business news on MSN Money, and the latest from market writer Charley Blaine.
- Dow falls 59 as late-day gloom kills a rally
- Stocks held back by fiscal-cliff worries
- Stocks suffer worst weekly loss in 5 months
- Dow off 121 as post-election swoon continues
- Dow slumps 313 after Obama's re-election
- Dow jumps 133 as Americans head to the polls
Try as the bears might, they couldn't break U.S. stocks. But investors still face frothy prices and considerable headwinds.