Hark...! Is that the faint, half-strangled, rarely heard, but unmistakable whisper of accountability...? From the somnolent SEC...? Yikeys...!

could it be...?

S.E.C. Accuses Countrywide’s Ex-Chief of Fraud

Angelo R. Mozilo, the Bronx-born businessman who built Countrywide Financial into the nation’s largest mortgage lender before it was knocked down by the credit crisis, has been charged with securities fraud and insider trading in a civil suit brought by the Securities and Exchange Commission.

Citing e-mail messages in which Mr. Mozilo referred to Countrywide loan products as “toxic” and “poison,” S.E.C. officials said he misled investors about growing risks in the company’s lending practices from 2005 through 2007. During this time, he also profited by selling stock in the company, gaining $140 million.

“This is the tale of two companies,” said Robert Khuzami, enforcement director at the S.E.C. “Countrywide portrayed itself as underwriting mainly prime quality mortgages using high underwriting standards. But concealed from shareholders was the true Countrywide, an increasingly reckless lender assuming greater and greater risk.”

The suit also said David Sambol, former president of Countrywide, and Eric Sieracki, its former chief financial officer, concealed from investors the high-risk nature of the subprime loans that the company was making. Countrywide needed to maintain its position as the leading lender in a hot mortgage market, the S.E.C. said, and underwrote increasingly dangerous loans; all the while assuring investors that its loans were top quality.

now, let's nail us some more fraudsters...

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