Wednesday, May 13, 2009
The Orange Man, Countrywide co-founder Angelo Mozilo, may soon be wearing an orange jumpsuit to match his tan as the WSJ reports($) the SEC is about to file charges.
The SEC sent a so-called Wells notice to Mr. Mozilo several weeks ago alerting him of the planned charges, the people said. The potential charges include alleged violations of insider-trading laws as well as failing to disclose material information to shareholders, according to one person familiar with the matter.Those 2007 stock sales may come back to bite him in the you-know-what.
A Wells notice is a precursor to a civil lawsuit in an SEC investigation. It outlines to an individual or company under investigation what charges might be filed against them and gives a target a chance to respond to the allegations.
Mr. Mozilo has previously maintained that he hasn't done anything wrong. If the SEC's commissioners approve the filing of a civil suit against Mr. Mozilo, it could be announced within the next few weeks, say people familiar with the matter.