Mozilo Settles With SEC For $67.5 Million
The settlement which included a $22.5 million penalty, plus an agreement to pay $45 million in disgorgement of gains also permanently bars Mr. Mozilo from ever again serving as an officer or director for a publicly traded company. Angelo Mozilo was CEO of Countrywide Financial who misled investors about the condition of Countrywide and profited off inside information, according to a news release by the SEC. The Director of the SEC’s Division of Enforcement, Robert Khuzami, said that “Mozilo’s record penalty is the fitting outcome for a corporate executive who deliberately disregarded his duties to investors by concealing what he saw from inside the executive suite………looming disaster in which Countrywide was buckling under the weight of increasing risky mortgage underwriting, mounting defaults and delinquencies, and a deteriorating business model.”
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