Countrywide's Former Chief In Settlement of Fraud Case

Countrywide's Former Chief In Settlement of Fraud Case

www.nytimes.com

Angelo R. Mozilo, the founder and former chief executive of Countrywide Financial, once the nation’s largest mortgage lender, agreed to pay $67.5 million Friday to settle a civil fraud case brought by the Securities and Exchange Commission last year.
The settlement came just days before the case against Mr. Mozilo and two former colleagues was scheduled to go to trial before a jury in Los Angeles.
The two colleagues settled their cases Friday as well. David Sambol, the former president of Count

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The story says the S.E.C. brought charges against Mr. Mozilo and two others because they misled investors about the risks of investing in Countrywide.

In my opinion he and his two colleagues should be tried for destroying the economy and ruining the lives of countless innocent people. Yes, investors took a tumble but the protection of them should not be the sole purpose and aim of the S.E.C.'s investigation.

Shows you where the real interests of the fed lie.

www.nytimes.com
(visit the link for the full news article)

this is what happens with sub-prime. Countrywide was always fraudulant, however, after the CRE there was no choice, as the government said everyone should have a house

reply to post by aew14

Some of the responsibility for the bottom falling out of the sub-prime market belongs to the people who took out mortgages they should have known they could not afford. That's true.

FHA assistance has been crucial in allowing first-time homeowners, especially, to realize the "American dream" of the little (or not so little) house with a white picket fence. You can hardly blame people for aspiring to that.

IMO most of the blame goes to the unscrupulous mortgage lenders who knew full well that many of their of their clients would default and didn't care, as long as they were raking in the money themselves.

Today's update on this story:

nytimes.com

Lending Magnate Settles Fraud Case For 67.5 Million

What is even more interesting is where all these "fines" actually go or are spent when they are paid. No one ever reports on that. 67 million here, 1 billion there, 120 million over there, but where does this money go? Back to the investors or public? No. It is nothing more than a gov't shakedown to give the illusion of justice.

These scum bags need to wake up and understand we will not stand for this.