LOS ANGELES (CN) – Angelo Mozilo will pay a $22.5 million fine and disgorge $45 million in ill-gotten gains to settle inside-trading charges, the SEC announced today. The former CEO of Countrywide Financial also agreed never to serve as a director of a publicly traded company.
Countrywide’s former COO David Sambol agreed to disgorge $5 million and pay a $520,000 fine, and the company’s former CFO Eric Sieracki will pay a $130,000 fine.
U.S. District Judge John Walter approved the settlement this afternoon.
The SEC sued Mozilo in June 2009, saying he failed to disclose the risks Countrywide assumed as it became the nation’s largest mortgage lender, and traded on inside information, dumping millions of dollars of shares at price inflated by his failures to disclose Countrywide’s real operations.
Countrywide became the nation’s largest mortgage lender in the years before the financial catastrophe it helped unleash. Mozilo settled with the SEC days before he was to go to trial.