LOS ANGELES (TheStreet) -- Federal prosecutors have ended a criminal investigation of former Countrywide Financial CEO Angelo Mozilo, according to published media reports.
The probe, begun in 2008, yielded no indictments, according to a report by
The Associated Press
that cited an anonymous source close to the investigation. The news was first reported by the
Los Angeles Times
A leading U.S. mortgage originator, Countrywide boosted its market share by expanding into risky mortgages as the nation's housing boom accelerated. But as the boom went bust, those loans spelled disaster for the company, and it was purchased by
Bank of America
Federal investigators had been looking into Mozilo's actions during the subprime crisis, although their probe was never publicly announced, the
Expectations for an indictment dwindled after Mozilo agreed in October to a $67.5 million settlement of civil charges with the
Securities and Exchange Commission
The SEC had alleged that Mozilo and two other former Countrywide executives had misled the company's investors about the dangers of the mortgages it was originating, the
noted. Under the settlement, the three admitted no wrongdoing.
Mozilo attorney David Siegel declined to comment directly on the federal criminal investigation and the SEC charges, according to the
, but he said Mozilo had done no wrong in other cases that he still faces.
Those cases include civil lawsuits, some of which were filed by investors in Countrywide's mortgage-backed securities, the
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This article was written by a staff member of TheStreet.