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Legal Action Starts In The Us

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From the LA times;

Reporting from Costa Mesa and Washington -- Federal regulators today accused Countrywide Financial Corp. co-founder Angelo R. Mozilo of fraud and insider trading, saying he and two other executives failed to warn shareholders of the real risk of the mortgages the company was making at the height of the housing boom.

A civil lawsuit filed by the Securities and Exchange Commission in federal court also accuses David Sambol, Countrywide's former president, and Eric Sieracki, its former chief financial officer, of fraud.

Mozilo founded Countrywide in 1969 and was its chief executive until Bank of America Corp. purchased it last year as the giant home lender's financial condition deteriorated.

"Angelo Mozilo had access to detailed and alarming information about Countrywide's operations," said Rosalind Tyson, director of the SEC's Los Angeles regional office. "He knew that Countrywide was gambling with increasingly risky mortgages and he kept those details from investors while he was actively taking his own chips off the table."

More at http://www.latimes.com/business/la-fi-mozi...0,2270688.story

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