Tuesday, June 23, 2009

Countrywide Financial's senior executives are sued by the SEC

On June 4, 2009, the Securities and Exchange Commission filed a complaint against Angelo Mozilo, David Sambol, and Eric Sieracki, in the United States District Court, for the Central District of California, Case number CV 09-03994 VBF (AJWx). The complaint alleges that the named defendants "misled the market by falsely assuring investors that Countrywide was primarily a prime quality mortgage lender which had avoided the excesses of its competitors."

Based on this complaint, Countrywide Financial Corporation was founded by Eric Mozilo in 1969. Countrywide was headquartered in Calabasas, California, and its shares were traded on the New York Stock Exchange. Countrywide became one of the country's largest mortgage lenders until it suffered losses due to subprime loans, and was merged into Bank of America in July 2008. Angelo Mozilo was Countrywide's chairman of the board and its chief executive officer. David Sambol was Countrywide's chief operating officer. Eric Sieracki was Countrywide's chief financial officer.

Robin Mashal is a partner at the law firm of Hong & Mashal, LLP, and can be reached at (310) 286-2000. His practice focuses on business law, real estate law and civil litigation. Hong & Mashal LLP is a California business law firm.

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