Countrywideâs Mozilo settles SEC charges
According to court filings, Mozilo agreed to repay $45 million in profits, and $22.5 million in civil penalties, stemming from charges filed against him by the SEC last year. The SEC alleged that Mozilo and former Countrywide executives David Sambol and Eric Sieracki misled shareholders about the quality of loans on the companyâs books. In addition, Mozilo was charged with selling company shares based on inside knowledge of the companyâs troubles.
Countrywideâs Mozilo settles SEC charges
By John Letzing, MarketWatch
SAN FRANCISCO (MarketWatch) â Countrywide Financial co-founder Angelo Mozilo and two other former company executives reached a deal with the U.S. Securities and Exchange Commission on Friday, agreeing to pay millions of dollars to settle insider-trading and fraud charges.
According to court filings, Mozilo agreed to repay $45 million in profits, and $22.5 million in civil penalties, stemming from charges filed against him by the SEC last year.
The SEC alleged that Mozilo and former Countrywide executives David Sambol and Eric Sieracki misled shareholders about the quality of loans on the companyâs books. In addition, Mozilo was charged with selling company shares based on inside knowledge of the companyâs troubles.
Under the terms of the agreement, all three men did not admit or deny guilt.
Countrywide was a driving force behind the market for risky, subprime mortgage loans that boomed earlier in the decade, before melting down and helping cause a severe financial crisis.
Sambol, Countrywideâs former president, agreed to repay $5 million in profits, and $520,000 in civil penalties, according to court filings.
Sieracki, the companyâs former finance chief, agreed to pay $130,000 in civil penalties.
Countrywide was acquired by Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 11.94, -0.04, -0.33%) in 2008, after the subprime disaster had crippled the mortgage giant.
John Letzing is a MarketWatch reporter based in San Francisco.
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