Countrywide Chiefs Charged With Fraud

The former chief operating officer and the company’s former chief financial officer have also been charged with fraud.

Mr Mozilo is the most high-profile executive so far to face charges arising from the credit crisis.

Mr Mozilo, the butcher’s son who founded the California-based company in 1960, is accused of misleading investors about the level of risk the company was running in selling unaffordable mortgages to poor Americans.

He built Countrywide into a mortgage giant by pushing into every area of home lending. The company’s earnings jumped $500 million in 2001 to $2.7 billion in 2006.

The men are expected to plead not guilty to the civil charges.

Frenkels have a wealth of experience in fraud investigations, for more information contact John Frenkel or Vivian Cohen.

 

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