An irreverent Wall Street Blog
by Bill Singer
 
Join BrokeAndBroker blog on Facebook  Follow the BrokeAndBroker blog on Twitter  Connect with BrokeAndBroker on LinkedIn  Join Bill Singer on Google+  Subscribe to RSS Feed

Countrywide Financial Victims Lining Up To Get Paid
Written: September 19, 2012

Shortly after the molten lava and ash from the eruption of the Great Recession fell upon us, on June 4, 2009, the Securities and Exchange Commission filed a Complaint  in the United States Central District of California, against Countrywide Financial Corporation executives:

  • CEO Angelo Mozilo,
  • former COO and president David Sambol, and
  • former CFO Eric Sieracki.

The Complaint charged the three  defendants with securities fraud arising in connection with Countrywide’s highly publicized efforts to emerge from the pack as a leader among mortgage lenders.  There was a lot of jockeying among those players in the mortgage biz — both those originating and those packaging and repackaging the debt — it was quite the club, with lots of elbows being thrown by the likes of Citibank, Wachovia, JP Morgan, Goldman Sachs,Fannie Mae, to name only a few.

As it sought to emerge from the pack on the crowded mortgage biz track, Countrywide didn’t exactly come clean about the true nature of the credit risks inherent in its portfolio and many investors were the worse for that non-disclosure. The Complaint alleged that Mozilo, Sambol, and Sieracki knew that Countrywide was writing increasingly risky loans and that defaults and delinquencies would inevitably rise among loans that Countrywide serviced or had packaged and sold as mortgage-backed securities.

Following their settlements in October 2010 with the SEC, the three defendants paid the following  civil penalty, disgorgement and prejudgment interest:

  • Mozillo:  $67,500,000,
  • Sambol: $5,520,000, and
  • Sieracki: $130,000.

SIDE BAR: Mozilo received a credit of $25,000,000 for sums credited to him as part of his settlement in the class action In re Countrywide Financial Corporation Securities Litigation.

In addition to the financial penalties, Mozilo and Sambol consented to the entry of a final judgment that provided for a permanent injunction against violations of the federal securities antifraud laws. Mozilo also consented to the entry of a permanent officer and director bar, and Sambol consented to the entry of a three-year bar. Sieracki agreed to a permanent injunction from further violations of Sections 17(a)(2) and 17(a)(3) of the Securities Act, and consented to a one-year bar from practicing before the SEC.

Payback

On July 12, 2012, a Plan of Allocation and the Plan of Distribution of the Fair Fund was approved, under which funds will be distributed to eligible claimants who submit valid proof of claim forms or who have already submitted proof of claim forms in the class action.  If you believe that you are entitled to payment from the Fair Fund, contact:

Rust Consulting 1-877-225-9893,

Email: info@MoziloFairFund.com

Website: https://mozilofairfund.com


 
[^top^]

Previous Entries
April 24, 2014
Few financial products have proven as controversial as Real Estate Investment Trusts, and few REITS have grabbed their share of negative headlines as ... Read On
April 24, 2014
Virtual currency, electronic money, cryptocurrency: Whatever the name, it's in the news but not necessarily in a good way. When I start getting an inc... Read On
April 23, 2014
Wall Street may be the place where trillions of dollars exchange hands, but it's not the place where a registered person should simply ask a customer ... Read On
April 22, 2014
Stockbroker, Compliance, Legal, and Regulatory JobsEmployment Page BrokeAndBroker.com Jobs#brokeandbroker #billsinger #wallstreetjobs&n... Read On
April 21, 2014
I fully appreciate that FINRA has a legitimate concern about industry personnel impersonating customers. I also understand why it is appropriate in th... Read On
April 19, 2014
Will This Tax Season Lien On You?April 18, 2014We just made it through another tax season. The good news is that you filed and are fully paid up -- or... Read On
April 18, 2014
We just made it through another tax season. The good news is that you filed and are fully paid up -- or, the bad news is that you didn't file or you h... Read On
April 17, 2014
In this digital age there are still folks who physically cut-and-paste. How quaint. Of course, quaint or not, when you start using the terms "cut-and-... Read On
BrokeAndBroker.com Job Search
Related Topics
Tag Cloud
Internet FINRA Bear Stearns Bloomberg SEC NASD NYSE Money Laundering Due Diligence Waiver Forbes China Chepucavage Broy Woody Allen Madoff NAC NPR Marketplace Stanford UBS Ketchum Antitrust NASDAQ RRBDLAW Schapiro Bill Singer BrokerAndBroker USERRA Brokeandbroker.com Morgan Keegan Arbitration BrokeAndBroker.com Khuzami BrokeAndBroker Aleynikov Goldman Sachs brokeandbroker Promissory Note U4 Bill SInger EFL CFTC Huffington Post Flash Crash arbitration RBC RRBDLAW.com Ponzi Affinity Fraud Wachovia Raymond James BrokeandBroker.com Expungement Fraud Securities Fraud Outside Business Activity Registered Rep Magazine FOREX BrokerAndBroker.com FBI Banc of America Pro Se Supreme Court Morgan Stanley Smith Barney E*Trade Margin email Galleon Penson U5 Defamation Protocol Wells Fargo Punitive Damages Citigroup Merrill Lynch ARS Employee Forgivable Loan Street Legal Morgan Stanley AWC Fidelity Bankruptcy Broke And Broker HFT David Sobel Day Trading Ameriprise Commissions Spouse Schwab CRD Kenneth Starr IRS CNBC Complaint ATM Skimming Hacking Phishing Malware Naskovets Poteroba Koval Lincoln Financial Selling Away Outside Business Activities Rakoff 2nd Circuit Second Circuit IRA 401k Forgery Tax RRBDlaw.com Email Netschi Moore Whistleblower Street Sweeper Tran Bharara Facebook Online Severance Bonus Eligibility Rule TD Ameritrade Hedge Fund SAC 1099 Smith Barney Lehman Brothers IC3 Scottrade Lehman JPMorgan Chase Hertz Insider Trading Bank of America Elles Bribe Auction Rate Securities Raiding Spam Edward Jones Medicare Diabetes Dow Schumer Walter Bid Rigging Real Estate Discrimination Wall Street Statutory Disqualification Form U4 Form U5 Indictment Boyland DOJ Corruption bill singer FTC Do Not Call FINRA Arbitration Costa Rica Settlement LIBOR Varney Plea Rule 8210 RRBDlaw Appeal Fowler LPL Johnson US Airways Reg D MSSB Vault Loan SunTrust Discovery Employment Rosenthal Recruiting Lawyer Trading Platform JP Morgan Employment Tuesday Wrongful Termination Bank Guarantee WaMu Solicitation REIT Martin Credit Cards Away Account Credit Repair PN Advisor Placement Group Forex Mortgage Private Placement Moon Merrill Anderson Exam Lee Borrowing Tax Lien Conversion Oppenheimer Wedbush Felony Misdemeanor Expenses ING Lien OTR Estate Jobs Florida Credit Card Elderly Flash Drive Annuity FNMA BrokeAndBroke TIC DWI Promissory Notes Suitability Will POA Power of Attorney Casino NSF MF Global Counterfeit Preet Bharara Corzine Hacker Prison NASAA Aguilar FCPA Identity Theft Gold Dell Bar Injunction Bank Deutsche Bank God HSBC Private Placements Eric Stein Wire Fraud CCO Joshua Brown Backstage Wall Street Obstruction of Justice Retaliation Variable Annuity Outside Account Options Telephone Wine Social Media ADA Pacifico Non-Prosecution Agreement Confirm Tax Fraud Retirement OBA Equity Indexed Annuities EIA MetLife Continuing Education Impersonation Annuities BBVA Business Expenses OIP ETF JOBS Act Mail Fraud Parking Variable Annuities Signatures BitTorrent Wire Transfer Wire Crowdfunding Nasdaq Away Accounts WSP Laptop Dodd Frank Checks PST Solicited Unsolicited Congress SRO Wife Discretion Non-Solicitation Restaurant Commodities Private Securities Transaction Offer of Settlement employment jobs Great Recession Chase Investment Services Barclays Willful Apple Time And Price T&P Husband Letter of Authorization LOA Sexism Knight Test Practice Sale Unfair Competition Signature Judgments Undisclosed Settlement Trainee Fee Trust Laser Side Bar Mattera Female Sales Assistant Kennedy Sexist Argentina Judgment Bank Fraud TSSB Trustee Frumento 6th Circuit Proctor Class Action Beneficiary NYAG Schneiderman Gallagher White Compromise Website Supervision Piwowar Tax Liens signature VA
 
Email Bill Singer Connect with Bill Singer on Facebook Follow Bill Singer on Twitter Link up with Bill Singer on LinkedIn Join Bill Singer on Google+