Angelo R. Mozilo, founder and former chief executive of Countrywide Financial Corporation, and two others settled a $73 million deal with the SEC to avoid going to trial on allegations of fraud and insider trading. The SEC suit, filed in June 2009, alleged that Countrywide’s exposure to risky loans was misrepresented by the three men and also accused Mozilo of insider trading. Mozilo was personally accountable for a $22.5 million fine, which is the largest penalty ever paid by a senior executive of a public company in an SEC settlement. All of the $73 million settlement will go to former Countrywide shareholders.
For more information see: http://www.latimes.com/business/la-fi-mozilo-sec-20101016,0,862177.story