The Top SEC Settlements of 2011

By Joel Stonington - 2012-01-03T23:18:44Z

Photograph by Jay Mallin/Bloomberg

Company Symbol % Change
18 of 22

No. 4: Angelo Mozilo

<p><strong>Total Settlement:</strong> $67.5 million<br /><strong>Disgorgement:</strong> $45 million<br /><strong>Penalty:</strong> $22.5 million

This case is cited by the SEC as evidence of regulators' success at getting to the roots of the housing collapse, and by others as an example of the failure to criminally prosecute those responsible. The <a href="http://sec.gov/news/press/2010/2010-197.htm">SEC alleged</a> that Mozilo, the former CEO of Countrywide Financial, misled investors about subprime loans. In 2006, Mozilo knew of the risk from subprime loans, exercised 5.1 million stock options, and sold the shares for $139 million, <a href="http://www.bloomberg.com/apps/news?pid=newsarchive&amp;sid=a8kh0bKDHKzI">according to Bloomberg</a>. Mozilo was never criminally charged in the case and the criminal investigation ended in February, <a href="http://www.businessweek.com/news/2011-02-19/u-s-said-to-end-criminal-investigation-of-mozilo.html">according to Bloomberg Businessweek</a>.

Advertisement