Got one of them - Countrywide Chief Executive Angelo Mozilo
You can run a scam for a while but it will always catch up with you.
From
CNN/Money:
Countrywide's Mozilo accused of fraud
SEC: Countrywide founder and 2 others misled investors about mortgage lender's health - Mozilo pocketed $140 million from insider trades.
The Securities and Exchange Commission on Thursday filed securities fraud charges against former Countrywide Chief Executive Angelo Mozilo and two other former executives.
The trio was charged with deliberately misleading investors by telling them the company was a quality lender of mostly prime mortgages and had prudent underwriting standards, while it actually was engaging in very risky lending practices in order to build and maintain market share.
Mozilo was also charged with insider trading for selling his Countrywide stock for nearly $140 million in profits while knowing that Countrywide's business model was deteriorating.
Along with Mozilo, the SEC charged former Chief Operating Officer and President David Sambol and former Chief Financial Officer Eric Sieracki with hiding the company's true practices and condition from shareholders.
No word as to sentencing (if any). Ten years would be a nice start. Not only lied to investors about the strength of the company but also sold his personal shares knowing that Countrywide was going down.
Posted by DaveH at June 4, 2009 10:23 PM