SEC to Charge Former Countrywide CEO Angelo Mozilo with Insider Trading. - CNBC
The SEC will charge Angelo Mozilo, former chairman and CEO of Countrywide Financial, with insider trading, according to people familiar with the situation.
The SEC will also charge the company's former chief operating officer, David Sambol, and former financial chief, Eric Sieracki, with securities fraud for failing to disclose the firm's relaxed lending standards in its 2006 annual report.
The charges, which are expected to be announced by the SEC later today, will not be accompanied by any criminal indictments.
Mozilo sold hundreds of millions in Countrywide stock in late 2006 and 2007 and is accused of remaining publicly upbeat about his company's prospects during a period when he knew things weren't going well for the firm.
Countrywide became the nation's largest single home lender during the housing boom and was acquired by Bank of America after much of its business deteriorated.
Shocked, just shocked I tell you!
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