Countrywide’s former chief executive Angelo R. Mozilo was under federal investigation for possible insider trading. Los Angeles federal investigators dropped charges two years after their initial inquiry.
The Securities and Exchange Commission discovered that Mozilo sold $140 million worth of Countrywide stock between 2006 and 2007 as he acknowledged the fact his company was faltering.
In October of last year, Mozilo settled his case, with out admitting fault, for $67.5 million with Bank of America paying $45 million leaving Mr. Mozilo accountable for the remaining amount.
According to The New York Times the settlement agreement also included a permanent ban of Angelo Mozilo “from serving as an officer or a director of a public company.”