Countrywide's Mozilo Settles With SEC, Will Likely Avoid Trial

Angelo MoziloCountrywide Financial Corp. co-founder Angelo Mozilo has reached a settlement agreement with the Securities and Exchange Commission related to charges of insider trading and civil fraud, according to numerous sources.

Mozilo will reportedly pay $67.5 million in fines.

Mozilo, who started confidential settlement discussions with the SEC in the past few weeks, won't have to stand trial next week and stands little chance of facing criminal charges thanks to the settlement.

Countrywide was acquired by Bank of America Corp. (BAC) in 2008.

Mozilo -- along with two other defendants,former Countrywide president David Sambol and ex-CFO Eric Sieracki -- failed to disclose financial problems associated with Countrywide's risky loans and subprime mortgages to shareholders, according to the SEC. The regulatory agency also alleged that Mozilo conducted insider trading when he sold almost $140 million of Countrywide stock, according to the Journal. Mozilo was ordered to stand trial last month by U.S. District Judge John F. Walter.

Bank of America, which reiterated that all events related to SEC allegations occurred before the company's acquisition of Countrywide, said in a statement today that it was "pleased to see that the SEC and the defendants have reached a settlement," adding that its Countrywide unit will advance funds to Mozilo to pay non-penalty amounts ordered by the court.

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twlynn

what a sad sack of crap

October 17 2010 at 9:50 PM Report abuse +1 rate up rate down Reply
stevearcher209

hes an old fart,,,,,,,,just like his cronies so what if they do a little time in old age same crap diff day i alrady pay 50 percent of my wages to gov and after the election in nov watch out no more ret no more unions just slave labor and INFLATION

October 17 2010 at 6:01 PM Report abuse +1 rate up rate down Reply
budfields

OK, I'll start this post by naively asking how Countrywide's shenanigans are so different from Enron's? Skilling, Fastow and the other "smartest guys in the room" went to jail. I suspect they could've each $67.5M for their 'get out of jail free' cards. Anyone?

October 17 2010 at 11:02 AM Report abuse +1 rate up rate down Reply
PappyHappy

What a deal!! They -- along with the able assistance of Barney Frank and Chris Dodd -- touched off a world wide recession that is being felt to this day. These turkeys pay back a few million, while others lost billions, and the US now has a deficit of over trillion dollars!! Pitchfork anyone??????

October 16 2010 at 3:21 PM Report abuse +1 rate up rate down Reply
john g.

Well it only figures that angelo was not going to fight the sec. The sixty seven. five million was probable made up by now in the investments he made in the past couple of years.What do you think Smart!

October 16 2010 at 9:31 AM Report abuse +1 rate up rate down Reply
moonlit801

are you kidding me...and martha went to jail for her trivial insider trading case. this is a joke. that guy is a criminal, martha stewart wasn't. wonder whos campaign fund he backed. this is so typical today. that jerk should be spending the rest of his life in jail.

October 16 2010 at 8:26 AM Report abuse +2 rate up rate down Reply
jkenny

I Guess The (Friends of Angelo Programs) still exists

October 16 2010 at 1:51 AM Report abuse rate up rate down Reply
mossypond

Must be nice. Apparently all one needs is money - if you have enough you can whatever law you want and you don't even get put on trial, let alone go to prison. All you do is buy off the authorities by giving them a few million bucks. And if you're well connected like he obviously is, you can also get your crooked friends at BOA to help pay all your ancillary expenses. Our legal system is a TOTAL FAILURE sometimes, and this is one of those times.

October 16 2010 at 1:15 AM Report abuse +2 rate up rate down Reply
Welcome Harris

why no jail for this criminal.once again one ever goes to jail.they pay fines.and walk away very very rich.I guess only the rich can do trhe crimes and walk away scott free.No wonder washington is the way it is.sec treasury all are so guilt.somethings never change only the poor working people go to jail.If you steal a piece of bread see how long you or I would be in jail for that.

October 15 2010 at 11:20 PM Report abuse +1 rate up rate down Reply
netexas121

This guy has guilty written all over his ugly face. If the SEC and Treasury really did their jobs they would probably find alot of money shuffled right into the silk lined pockets of the mafia. With people like him and Madeoff why does the Taliban even need to put to much effor attacking us. The true terror comes from within our own borders and our own citizen's.

October 15 2010 at 11:06 PM Report abuse +2 rate up rate down Reply