Updated from 10:28 a.m. EDT
Former Countrywide Financial CEO Angelo Mozilo was charged with insider trading, the SEC announced Thursday. Mozilo is also facing civil fraud charges, along with two other former executives of the company.
The Securities and Exchange Commission held a press conference in Washington detailing its complaint against Mozilo, former President and COO David Sambol, and former CFO Eric Sieracki. The SEC's fraud allegations center on a scheme to conceal credit problems and financial instability of the mortgage lender from investors.
Countrywide has become the poster child for the subprime mortgage debacle. Before the housing crisis, Countrywide was the country's largest mortgage lender. Beginning as a conventional lender when it was founded by Mozilo in 1969, in recent years the company is known more for its role in profiting by liberalizing lending standards and making risky subprime loans to even riskier borrowers. ...
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