Summary Box: Mozilo settles with SEC for $67.5M

AP News
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Posted: Oct 15, 2010 9:38 PM
Summary Box: Mozilo settles with SEC for $67.5M

BIG SETTLEMENT FOR COUNTRYWIDE CO-FOUNDER: Former Countrywide Financial CEO Angelo Mozilo agreed to a $67.5 million settlement to avoid trial on civil fraud and insider trading charges. Federal regulators had accused him of profiting from doling out risky mortgages while misleading shareholders about the risks.

LEADING FIGURE IN MORTGAGE MESS: Mozilo was the highest-profile defendant yet to face federal trial for risky business practices leading to the housing collapse that sent the country into recession.

BANK PICKING UP PART OF TAB: Mozilo will pay $22.5 million in civil penalties from his own pocket. But $25 million of his $45 million restitution will come from an escrow fund to cover shareholder litigation. The remaining amount will be covered by Bank of America, which bought Countrywide in 2008.