SEC charges former Countrywide CEO - The Business Review (Albany):

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(NYSE: BAC) bought Countrywide in July forabout $2.5 The deal made the N.C.-based bank the country’s largest mortgager lender. SEC regulators accuse Mozilo and two othef former executives of misleading investors about the creditg risks the company took to increas itsmarket share. The SEC alleges former Chief Operating Officer David Sambol and formet Chief Financial Officer Eric Sieracki falselg assured investors that Countrywide was primarilya prime-quality mortgages lender that had avoideed underwriting risky loans. The charges stem actions in from 2005to 2007. Mozilo also was charged with insider trading.
The SEC allegex he sold Countrywide stock on the basis of nonpublic reaping $140 million in profits. New York state Comptrolle Thomas P. DiNapoli todaty praised the SEC's actioh against Mozilo. “Investors must be assurefd that the markets are free of frauxdand deception, and the SEC’s enforcement actiobn against Countrywide executives sends a clear signal that abuse of investorss will not be tolerated,” DiNapoli said. “The SEC’w allegations strongly support our claims that defendantxs engaged in various violationxs of the federalsecuritiexs laws.
We look forward to carrying this case forwars on behalf of the more than onemillionm members, retirees, and beneficiaries of the statd pension fund and the class of wrongedd investors we represent.” DiNapoli, as sole trustese of the New York State Common Retirement Fund (Fund), and several New York City pensionm funds are the lead plaintiffs in a consolidated class action lawsuit against Countrywide and other defendants, includinb the executives named in the SEC DiNapoli said the fund lost tens of millions of dollars as a result of the allegecd securities law violations by Countrywide and other Countrywide had loan officee in Latham and Saratogq Springs.