The Securities and Exchange Commission staff is readying civil fraud charges against Countrywide Financial Corp. co-founder Angelo Mozilo, in what would be the highest-profile government legal action against a chief executive connected to the financial crisis, the Wall Street Journal is reporting.
The SEC staff sent a so-called Wells notice to Mozilo several weeks ago alerting him to the potential charges, people familiar with the matter said. Mr. Mozilo’s lawyers could still persuade the SEC’s commissioners that there isn’t sufficient evidence to bring a case.
The charges the SEC is considering include alleged violations of insider-trading laws and alleged failure to disclose material information to shareholders, according to one person familiar with the matter. A lawyer for Mozilo said there is no “fair basis” for any allegations against the former Countrywide chief executive.
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