At a shareholder meeting almost a year ago it all came to a dismal end. Countrywide Financial, the nation’s largest mortgage lender, had slipped beneath the waves.
Meanwhile, CEO Angelo Mozilo rowed quietly away hoping to be left alone. Inside, though, he just had to be laughing his fool head off-all the way to the bank.
After all, he had come along way from his days of making sausages and sweeping floors.
In fact, Angelo “earned” $10.8 million last year and cashed in on over $450 million in stock gains as the company he founded got absolutely hammered by losses on idiotic mortgage loans.
Not a bad payout for a kid who slept on the sofa so that his sister could have the bedroom.
But his finest work was saved for Bank of America CEO Kenneth Lewis.
That’s because somehow Angelo and his friends managed to convince Lewis to buy his sinking boat before it went to the bottom.
Now that’s what I call a slick salesman.
But Karma has a funny way of eventually striking back, often leveling those enriched by their own greedy hubris.
For Angelo, that moment likely began on Wednesday.
From CNNMoney by Tami Luhby entitled: SEC may charge Countrywide’s Mozilo
“Staffers at the Securities and Exchange Commission are recommending that the agency file civil fraud charges against Countrywide co-founder Angelo Mozilo, according to a published report.
The agency sent a notice to Mozilo telling him of the potential charges, which include violations of insider-trading laws and failing to disclose information to shareholders, according to the Wall Street Journal, which cited people familiar with the investigation. The agency may ultimately decide not to file charges.
Mozilo’s attorney, David Siegel, declined to comment, but told CNNMoney.com that the “persistent innuendo” that Mozilo sold Countrywide shares because he knew of problems within the mortgage lender is “scandalous” and “inconsistent” with the facts.
“We do not believe there is any fair basis for allegations to be made against Mr. Mozilo,” Siegel said in an e-mail. “All of Mr. Mozilo’s stock sales were made in compliance with properly prepared and approved trading plans and reflected recommendations by his financial advisor over a long period of time.”
Good luck Angelo. You’re going to need.
Because somehow I’ve got the feeling that this is just the tip of your legal iceberg.
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