Yahoo! It's about god damed time !
But, where are the criminal charges against him for similar fraud knowingly and willingly committed against the masses and which financially destroyed millions of Americans ? How come only the "investor" class gets justice ? I hope there's a trial and it's on court t.v.
But, I doubt it
. He'll be used by the faux outrage politicians and gov't lawyers as an example to show how much the power brokers "care" about fraud (yea, right; both parties aided and abetted creeps like Mozilo by knowingly and willingly turning a blind eye for yrs and yrs by voting down any legislation (which they still continue to do even in this financial meltdown) that would've protected the masses from perps like him who could then systematically rob Americans over and over and over again and into their damn graves. Heck, they just aided and abetted the thicker than thieves again by voting down the bankruptcy bill, the credit card bill (watered down), and any bill that will truly protect consumers from fraud and deceit. So, I am not under any illusions that anyone in power really thinks Tan Man needs to be punished, as both parties are neck and neck in the greed, dirty power, fraud depts. IMO
But, the faux dog and pony show that may result re Mozilo charges will be fun to watch. And, it's not Tan Man who is funny to watch. It's the phony politicians and their fake war on fraud that is the funny part. I love to watch the faux outragers. They're a hoot. I thought Rep. Byron Dorgan was a hero (he's pushing some book about how he saw this mess coming blah, blah, blah). He's one of 7 or 8 that voted against (after the S&L crisis) overturning the regs that would have stopped Wall St.ers from being able to gamble the country away. Sounded like a smart hero on t.v. Then, I read later he TOO was bought off by bankers when he recently voted down the bankrupty bill. All full o' shyt.
I wonder if Mozilo has found Jesus yet ? He should soon be making the rounds on CBN with Pat Robertson, as a reformed man. He he he
COUNTRYWIDE'S MOZILO ACCUSED OF FRAUD
SEC: Countrywide founder and 2 others misled investors about mortgage lender's health. Mozilo pocketed $140 million from insider trades.
By Tami Luhby CNNMoney.com senior writer Last Updated: June 4, 2009
NEW YORK (CNNMoney.com) -- The Securities and Exchange Commission on Thursday filed securities fraud charges against former Countrywide Chief Executive Angelo Mozilo and two other former executives.
The trio is being charged with deliberately misleading investors about the significant credit risk Countrywide took to build and maintain its market share.
Mozilo was also charged with insider trading for selling his Countrywide stock for nearly $140 million in profits while knowing that Countrywide's business model was deteriorating.
The SEC alleges that Mozilo, along with former COO and President David Sambol and former CFO Eric Sieracki, misled the market by falsely assuring investors that Countrywide was primarily a prime-quality mortgage lender.
"This is the tale of two companies," said Robert Khuzami, director of the SEC's Division of Enforcement. "Countrywide portrayed itself as underwriting mainly prime quality mortgages using high underwriting standards. But concealed from shareholders was the true Countrywide, an increasingly reckless lender assuming greater and greater risk."
From 2005 to 2007, Countrywide engaged in an unprecedented expansion of its underwriting guidelines and was writing riskier and riskier loans, according to the SEC. The senior executives knew that defaults and delinquencies would rise.
"Angelo Mozilo privately described one Countrywide product as 'toxic,' and said another's performance was so uncertain that Countrywide was 'flying blind,' " Khuzami said.
An attorney for Mozilo called the SEC's allegations "baseless." (
Yea, right )
"Mr. Mozilo acted properly and lawfully at all times as the CEO of Countrywide," said David Siegel. "Those sales were entirely lawful, complied with applicable laws and regulations, and were made under the terms of a series of written sales plans which were reviewed and approved by responsible professionals."
Siegel said it is "demonstrably false" that Mozilo knew about risky lending practices at Countrywide and refused to disclose them. "The mix and risks of Countrywide's loan portfolio and its underwriting standards were well disclosed to and understood by the marketplace."
Countrywide acquired by Bank of America
Mozilo, who founded the company in a New York apartment, built Countrywide into the nation's largest mortgage lender. But Countrywide buckled during the housing meltdown and was acquired last year by Bank of America (BAC, Fortune 500).
BofA came under heavy fire for originally naming Sambol to lead the combined company's mortgage operations. A few months later, the bank reversed course before the acquisition was completed, saying Sambol would retire and appointing a BofA veteran to the top mortgage post instead.
"Current economic and business conditions have highlighted the need for strong and focused executive leadership with a deep understanding of the Bank of America culture and operating model," said BofA Chief Executive Lewis said at the time.
Bank of America referred comment to Siegel, saying the Countrywide executives were not employed at the company following the acquisition.
Mozilo became a poster boy for the subprime crisis. He reportedly stood to collect a windfall of $115 million in the $4 billion sale to BofA. But after facing heavy criticism from lawmakers, Mozilo said he would forfeit $37.5 million in payments tied to the deal.
CNN Senior Producer Scott Spoerry contributed to this report.
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Article: Countrywide Mozilo Charged SEC Fraud 
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