Ex-Countrywide CEO Accused of Securities Fraud in 'Strategic' Case
Former Countrywide CEO Angelo Mozilo is facing accusations of securities fraud in a civil suit by the Securities and Exchange Commission.
The SEC said Mozilo made $140 million selling stock in Countrywide at the same time he warned in e-mail messages that the company’s loan products were “toxic” and “poison,” the New York Times reports.
David Martin, co-head of Covington & Burling’s corporate and securities practices, commented on the SEC’s motivation in an interview with the National Law Journal. “They’re really making an effort to bring smart cases, that is, ones that have strategic value,” he said.
Mozilo’s lawyer, David Siegel of Irell & Manella, said his client acted “properly and lawfully” at Countrywide. “The lawsuit filed today by the SEC does not reflect a balanced or fair consideration of the facts or the law,” he said.
Two other Countrywide officials, former president David Sambol and former chief financial officer Eric Sieracki, were also named in the suit. Their lawyers also said the case had no merit.
