The Hindu Business Line : SEC charges Countrywide founder Mozilo with securities fraud

NEW YORK: US market regulator Securities and Exchange Commission (SEC) has charged Countrywide Financial founder Angelo Mozilo and two former executives with securities fraud.

Mozilo, who is the former Chief Executive of financial services entity Countrywide along with David Sambol and Eric Sieracki have been charged with fraud for misleading investors about the significant credit risk taken by the company. Sambol was the for mer Chief Operating Officer and President while Sieracki was formerly the Chief Financial Officer at Countrywide.

The SEC in a statement on Thursday said that Mozilo and two other former executives have been charged with “securities fraud for deliberately misleading investors about the significant credit risks being taken in efforts to build and maintain the company 's market share**.

Moreover, Mozilo who built Countrywide into the nation's leading mortgage lender, is also charged with insider trading for selling his company Countrywide stock based on non-public information for nearly $140 million in profits. Bank of America snapped up Countrywide in 2008 for about $2.5 billion, after the latter was severely hit by the financial turmoil. - PTI

Prev: Crisil downgrades Glenmark Pharma’s ratings
Next: G K Pillai new Home Secretary

Business Line | NUS Index |

Related Topics
Books
Browser's Corner
Cinema
Domestic Travel
Entertainment & Leisure
Fitness First
Food & Cuisine
Gender
Health
International Travel
Lifestyle
People
Radio/TV
Showbiz
Social Welfare

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line