Written by Biloxi
Crime doesn't pay when it comes to former corporate executives that commit fraud in the foreclosure crisis. Countrywide former CEO Angelo Mozilo skates again from seeing the sight of possible prison. Federal prosecutors drop their criminal investigation against Angelo R. Mozilo. Federal prosecutors determined that Mozilo's actions in the mortgage crisis, which led to $67.5-million settlement against him, did not amount to criminal wrongdoing according to the LA times. According to the LA times, "the criminal investigation into Mozilo was never announced publicly, and as a rule federal prosecutors make no formal announcement when such cases are closed".
Mozillo settled with the Securities and Exchange Commission on insider trading allegations last October:
Regulators had contended that Mr. Mozilo sold $140 million in Countrywide stock between 2006 and 2007 even as he recognized that his company was faltering. Countrywide and Bank of America paid $45 million of Mr. Mozilo’s $67.5 million settlement, and he was responsible for the rest.
Without admitting or denying wrongdoing, Mr. Mozilo agreed to be banned from serving as an officer or a director of a public company.
While Mozilo skates criminal probe and not civil probe, thousands of homeowners and investors are victims of Mozilo's demise. Investors lost million of dollars while homeowners lost their homes. Both investors and homeowners left holding the bag. This is another failed investigation of criminal prosecution. And this follows another corrupted corporate executive at AIG Financial Products in his dealings in mortgage-related securities, Joseph Cassano. SEC and Justice Department decided not to bring criminal charges on Cassano. The absence of "no one is above law" in the criminal acts of the banks and its executives is a real threat to the justice system.
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