$22.5 Million Penalty Paid to Settle SEC Charges
Former Countrywide CEO Angelo Mozilo is scheduled to pay largest ever financial penalty to settle charges that he and two other Countrywide executives misled investors during the subprime mortgage crisis. Mozilo also agreed to return $45 million in gains he made by trading on inside information, according to a release of information by the SEC, making his total settlement $67.5 million to be returned to investors that were harmed. The settlement also permanently bars Mr. Mozilo from ever again serving as an officer or director for a publicly traded company. The Director of the SEC’s Division of Enforcement, Robert Khuzami, said that “Mozilo’s record penalty is the fitting outcome for a corporate executive who deliberately disregarded his duties to investors by concealing what he saw from inside the executive suite………looming disaster in which Countrywide was buckling under the weight of increasing risky mortgage underwriting, mounting defaults and delinquencies, and a deteriorating business model.”
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