12 Months After a Deadline Passed to File Criminal Charges, Countrywide’s Mozilo Said to Face U.S. Suit Over Loans

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Countrywide’s Mozilo Said to Face U.S. Suit Over Loans

Countrywide Financial Corp. co-founder Angelo Mozilo hasn’t entirely escaped prosecutors’ wrath for his company’s risky lending. A U.S. government task force wielding an innovative legal strategy plans to bring a civil case against him over the excesses of the subprime-mortgage boom.

The last-ditch effort comes three years after the Justice Department abandoned a criminal probe of Mozilo. In 2012, public anger over the lack of prosecutions stemming from the financial crisis spurred the Obama administration to create a team devoted to investigating fraud in mortgage-backed securities. The group has wrestled at least $20 billion from Wall Street banks using a law with a relatively low threshold for suing and a long period to bring cases.

Relying on the same anti-fraud law, the Financial Institutions Reform, Recovery and Enforcement Act, the U.S. attorney’s office in Los Angeles is preparing to sue Mozilo and as many as 10 other former Countrywide employees, according to two people with knowledge of the matter. The case may be helped along by an imminent U.S. settlement with Bank of America Corp., which acquired Countrywide in 2008. That resolution may come as soon as today with Charlotte, North Carolina-based Bank of America expected to pay as much as $17 billion and to acknowledge improper mortgage practices at Countrywide.

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4closureFraud.org

Comments
2 Responses to “12 Months After a Deadline Passed to File Criminal Charges, Countrywide’s Mozilo Said to Face U.S. Suit Over Loans”
  1. alex says:

    These guys should be prosecuted and stripped from all the funds they stole and put in Jail unfortunately the law doesn’t apply to them only to us ( where is Justice)

  2. Well at least maybe our government and a few dozen lawyers will have get a windfall but I imagine old Mozilo has it all stashed in the Caymans or some Swiss bank and his house, well, doesn’t he live in one of those states where they don’t take it away from you regardless of what he did to the people that lost theirs because of him, Coluntrywide and B of A, their co-conspirators, did?

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