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October 25, 2012

Fed suit alleges 'brazen' fraud at Countrywide

(Continued)

In 2010, Countrywide’s former CEO, Angelo Mozilo, agreed to pay $67.5 million to settle the Securities and Exchange Commission’s accusations that he had misled investors and engaged in insider trading.

He was also permanently barred from serving as an officer or director of a public company. In 2011, federal prosecutors shelved a criminal investigation of Mozilo, saying his actions did not amount to criminal wrongdoing.

Bank of America had planned to put Countrywide’s president, David Sambol, in charge of the mortgage unit, but reversed course before it bought Countrywide. At the time, Bank of America said it wanted one of its own to run the unit because of how much was at stake.

In the past year and a half, Bharara’s office has settled lawsuits against CitiMortgage, Flagstar Bank and Deutsche Bank over mortgages. Its lawsuits against Wells Fargo and Allied Home Mortgage are pending.

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