Countrywide Executive Settles With The Sec For $67.5 Million
Angelo Mozilo, former Countrywide CEO, settled with the SEC for wrongdoings causing harm to investors during the subprime meltdown. His penalty of $22.5 million was the largest ever paid by a public company’s senior executive in an SEC settlement, according to SEC documents. He was also ordered to pay $45 million in disgorgement for profits made while trading on inside information. Appropriately, Mr. Mozilo is permanently barred from ever serving as a director or officer of 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, i.e., 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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