Special offer

Is the SEC investigating Mozilo and Countrywide?

By
Real Estate Agent with Orlando Area Real Estate Services

A report earlier this week suggested that the SEC was paying special attention to Countrywide and its founder and CEO, Angelo Mozilo.

Apparently the investigation is part of a larger look the SEC is taking at a dozen or so companies in connection with the subprime crisis, but it is having a much closer look at Countrywide and Mozilo.

Certainly part of that investigation has to include the issue of Mozilo dumping $130 million of his own company's stock in the first six months of this year.

Apparently North Carolina's state treasurer Richard Moore last week asked the SEC to investigate Mozilo's stock sales, claiming that there were changes made to the pre-set trading plans in the months before the company's stock fell.

So the question being looked at is whether or not Mozilo used his position and of course his inside knowledge of the company, to dump his stock before it tanked.

Watch this space - it could get VERY interesting!

Or for a more immediate update, tune into my radio show tomorrow (Sunday) at noon on 540 WFLA in Central Florida and if you are not in central Florida, then you can tune in on line at www.540wfla.com

Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Simon this goes to more of Stock Manipulation.  He was trying to raise the stock while at the same time Dump all his shares.  HHHmmm He did go out and tell everyone how stable Countrywide was on National TV CNN, CNBC, FOX etc.. while he at the same time selling all of his shares...
Oct 20, 2007 09:07 AM
Simon Conway
Orlando Area Real Estate Services - Orlando, FL
Matthew - the SEC refused to confirm the investigation last week, but they didn't deny it either as far as I can tell. And yes, he was the only one that said how great things were while the other companies were hurting....and yes, he did that while he was dumping - no other possible word for it - his own personal stock.
Oct 20, 2007 09:40 AM