Angelo Mozilo of Countrywide Charged with Fraud & Insider Trading
Angelo Mozilo, former CEO of Countrywide, a failed mortgage lender, has been charged with fraud and insider trading, along with former President David Sambol and former CFO Eric Sieracki. According to the Securities and Exchange Commission (SEC), the three execs misled their investors in regards to Countrywide's health as a lending body.
Countrywide, along with Merrill Lynch, was bought by Bank of America in January of this year.
The trio is being charged with deliberately misleading investors about the significant credit risk Countrywide took to build and maintain its market share.
Mozilo was also charged with insider trading for selling his Countrywide stock for nearly $140 million in profits while knowing that Countrywide's business model was deteriorating.