Fraud charges against Mozilo of Countrywide

[malaise]

http://www.latimes.com/business/la-fi-mozilo14-2009may14,0,4899015.story
<snip>
The co-founder and former chief executive of the onetime mortgage giant could face charges of insider trading and failing to disclose risks to shareholders.
By E. Scott Reckard and William Heisel
May 14, 2009
Former Countrywide Financial Corp. boss Angelo R. Mozilo, whose embrace of exotic loans helped fuel the mortgage boom and meltdown, will face Securities and Exchange Commission fraud charges unless his lawyers prevail in an eleventh-hour appeal, people familiar with the SEC's investigation said Wednesday.

Mozilo is among several former executives of the Calabasas company whom the SEC staff wants to charge in a civil case, one of these people said. He would face accusations of insider trading and failing to disclose to shareholders the risks the company was running unless the SEC's five commissioners overturn their investigators' recommendation.

[SoCalDem]

1. Gee.. just last year he was an "honored" member of some senate panel

..and all the republican legislators smoochied right up to him, and sang his praises...:rofl:

Boehner's tanning buddy?



.....................
http://www.nytimes.com/2008/03/08/business/08pay.html?_r=1&oref=slogin


The questioning mainly fell along party lines, with Republicans apologizing for bringing distinguished corporate officials before the panel, and Democrats questioning everything from the income gap in America to the particular bonuses, stock sales and compensation the executives were awarded.
..................................

[SoCalDem]

2. Apparently, this slug almost got Gore's Nobel prize

http://oldatlanticlighthouse.wordpress.com/category/angelo-r-mozilo/

Countrywide Chief loses out on Nobel Peace Prize
October 12, 2007

Countrywide’s CEO failed to win the 2007 Nobel Peace Prize for contributions to the subprime mortgage market. Al Gore narrowly edged out Angelo R. Mozilo, the chief executive of Countrywide Financial, in polling for the celebrated Norwegian prize. Maybe someone on the committee didn’t get the word at Davos this year, sell.

http://business.timesonline.co.uk/tol/business/money/property_and_mortgages/article2641750.ece

The US Securities and Exchange Commission is investigating stock sales made by Angelo R. Mozilo, the chief executive of Countrywide Financial, shortly before the lender fell victim to America’s mortgage crisis and its share price plunged.

The inquiry into whether Mr Mozilo acted on inside information is centred on changes that he made to a stock-selling programme that allowed him to speed up his sales of Countrywide shares and reduce his exposure to their price declines.

The investigation, which Countrywide and the SEC refused to comment on, is the latest development in the crisis which began with a surge in high-risk “sub-prime” mortgage lending, leading to a jump in defaults, which is dragging down US house prices and which prompted a wide-scale credit crunch.

Thousands of jobs have been cut at mortgage companies and the Wall Street firms that deal in related securities. Billions of dollars of investments have been lost, and previously agreed buyouts are being cancelled and renegotiated as the debt markets dry up.

Asked for his comment, Angelo R. Mozilo, said, you buy some, you sell some. This just wasn’t my year. As my great countryman said, “From Nobel Prize nominee to SEC investigation is but a step.”

[malaise]

4. Bwaaaaaaaaaaaaaaaaah

hahahahahahha :rofl:

[SoCalDem]

5. check out his "cash-ins"..

Insider Actions for Countrywide Financial Corp
08/13/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 46,000 Exercise of Stock Options
at cost of $675,740.00 chart

08/13/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 46,000 Open Market Sale
proceeds of $1,306,400.00 chart

08/08/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 92,000 Exercise of Stock Options
at cost of $1,351,480.00 chart

08/08/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 92,000 Open Market Sale
proceeds of $2,644,080.00 chart

08/07/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 110,000 Exercise of Stock Options
at cost of $1,093,400.00 chart

08/07/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 110,000 Open Market Sale
proceeds of $3,086,600.00 chart
08/01/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 30,000 Exercise of Stock Options
at cost of $298,200.00 chart

08/01/2007 ANGELO R MOZILO
Chairman & Chief Executive Officer 30,000 Open Market Sale
proceeds of $844,800.00 chart

[malaise]

6. Staying 'orange' all year

costs a lot of money :evilgrin:

[brendan120678]

3. This guy is also a friend of my "great" senator...

Chris Dodd. One of the few Democrats that I will celebrate when they are finally kicked out of office by the voters.