SEC Nails CEO of Countrywide Angelo Mozillo

A while ago, I pointed out the suspicious timing of stock sales by CEO of Countrywide, Angelo Mozillo. Mozillo sold Countrywide stock literally a week before it announced that it would have a massive big bath on subprime writedowns! You will remember that Angelo was the CEO who sold $10 million of stock in Countrywide at $28 per share 2 weeks before the whole mortgage market started coming apart and CFC got cut in half to $15. He must be the most luckiest person ever to have that kind of timing. Oh... I forgot. He's CEO of Countrywide! If that wasn't insider trading, I don't know what is. This is the same guy who says regulators needed to do more about their industry. Well, Angelo, you got your wish!

Today, the SEC launched an investigation into the timing of the stock sales and I applaud them for finally going after this blatant insider trading. Seriously, what a dolt!? If you are going to do insider trading, at least be smart not to do it 2 weeks before you pre-announce! I have serious doubts about any CEO who isn't smart enough to recognize how obvious that is!

Here's the scoop...

Countrywide's shares have fallen nearly 56 percent since January, and the company may now be facing an investigation from the Securities and Exchange Commission into the timing of stock sales made by Chief Executive Angelo Mozilo.

North Carolina State Treasurer Richard Moore, in a letter to SEC Chairman Christopher Cox, claims that Mozilo "apparently manipulated his trading plans to cash in" as the subprime crisis was heating up.

Moore cited reports that Mozilo was unloading 4.9 million Countrywide shares worth more than $138 million between November 2006 and August 2007.

On Friday, Countrywide announced Mozilo plans to sell more shares under a prearranged trading plan that began Monday and ends Friday.

Angelo ... I recommend Countrywide take out a full page ad in the Journal about your self dealing and insider trading ways.

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