Countrywide founder is formally charged by SEC
ANGELO Mozilo, co-founder of what was once the largest mortgage broker in the US, Countrywide Financial, has been charged by regulators for misleading investors, along with two of his former executives.
US financial regulator the Securities and Exchange Commission (SEC) has filed a civil lawsuit in a Los Angeles federal court against Mozilo, former Countrywide president David Sambol and chief financial officer Eric Sieracki.
The watchdog alleges they duped investors over credit risks being taken on by the group to build and maintain its market share. It also accused Mozilo of realising nearly $140m (£87m) in profit through insider trading.
Lawyers for Mozilo said last week he did “nothing improper”.
The case against Mozilo constitutes the highest-profile civil case stemming from the US housing collapse.
A solicitor for Sambol described the civil suit as “baseless” and said the agency “has no case”. He said: “The SEC wrongly asserts that Countrywide’s disclosures to its investors regarding its lending criteria should have been more extensive.”