Friday, October 15, 2010

Countrywide's Angelo Mozilo settles lawsuit for $67.5 million

This is the first housing crisis, the sub-prime meltdown.
Mozilo and two other former executives of defunct mortgage firm Countrywide Financial Corp. make a deal to avoid trial on accusations of investor fraud and insider trading. Mozilo will pay $22.5 million in fines and turn over $45 million in ill-gotten gains to former shareholders who sued him.
A criminal investigation of Mozilo remains open, people with knowledge of the probe said. With the SEC case settled, federal prosecutors will not see how the evidence against Mozilo plays out in a civil trial -- which could factor into their decision on whether to bring charges. Criminal charges carry a higher standard of proof.
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