Skip to main content

Federal Prosecutors Dismiss Case Against Ex-Countrywide CEO Mozilo

NationalMortgageProfessional.com
Feb 21, 2011

The U.S. Justice Department has agreed to drop a two-year criminal investigation into former Countrywide head Angelo Mozilo on charges of insider trading. Red flags were raised as Mozilo sold $140 million in Countrywide stock between 2006 and 2007, even as he recognized the company was faltering. The Securities & Exchange Commission (SEC), which had accused him of misleading investors about Countrywide's health and risk-taking, and generating an estimated $140 million in improper gains from insider stock sales. Mozilo started Countrywide in 1969 with David Loeb, and the duo grew the company into one of the nation's top mortgage lenders with approximately $11.4 billion in revenue at its peak in 2006. Mozilo became one of the highest-paid executives in America. From 2000 until 2008, it has been reported that he received total compensation in excess of $521.5 million. Regulators accused Mozilo of selling more than $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering, and hiding the risks of a faltering sub-prime market in public statements to shareholders. Earlier this month, California Attorney General Kamala D. Harris announced a $6.5 million settlement of a predatory lending case against Mozilo and David Sambol, former officers of Countrywide.
Published
Feb 21, 2011
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022
AARMR No Protection For Savanah Scares

Conference provides opportunity for regulators to interact, discuss common topics

Regulation and Compliance
Jan 04, 2022
McCargo Sworn In As Ginnie Mae President

Former HUD official becomes the first female to lead the Government National Mortgage Association.

Regulation and Compliance
Jan 04, 2022