Ex-Countrywide CEO Mozilo will not face U.S. fraud case: sources

© Reuters. File picture of Countrywide Financial Corporation CEO Mozilo on Capitol Hill in Washington

By Nate Raymond NEW YORK (Reuters) – Former Countrywide Financial Corp CEO Angelo Mozilo and other executives will not face a U.S. Justice Department suit for defrauding financiers in mortgage-backed securities provided prior to the 2008 financial crisis, people familiar with the matter said on Friday. Mozilo, 77, and others were just recently informed by the Justice Department that they would not be the subject of a civil scams case related to their roles at the home loan lender in the run-up to the crisis, the sources stated. The decision came 2 years after the possible case versus Mozilo emerged, amid criticism of the Justice Department for having actually failed to pursue charges against high-ranking executives connected to the home mortgage crisis. “We are pleased by the decision of the Department of Justice to close its examination without more lawsuits,” David Siegel, Mozilo’s legal representative, said in a statement. Eric Sieracki, Countrywide’s former primary financial policeman, has likewise been notified he will not be sued, according to his legal representative, Shirli Weiss. Patrick Rodenbush, a spokesman for the Justice Department, decreased remark. The news was first reported by Bloomberg News. Countrywide, at one time the country’s leading home mortgage company, collapsed under the weight of soured loans and was gotten for about $4 billion by Bank of America Corp (NYSE:-RRB- in July 2008. However with the acquisition came a series of claims and governing examinations originating from Countrywide’s role in the subprime home loan crisis, for which Mozilo turned into one of the industry’s most recognizable names. Bank of America agreed in 2014 to pay a record $16.65 billion to deal with government claims that it and companies consisting of Countrywide that it had obtained deceived financiers into purchasing troubled mortgage-backed securities. Mozilo concurred in 2010 to a $67.5 million settlement with the United States Securities and Exchange Commission, which had actually accused him of misleading investors about Countrywide’s health and risk-taking. Bank of America agreed to cover a few of the payment. The Justice Department later on in 2011 shelved a criminal investigation of Mozilo. The more current civil probe by the Justice Department was being dealt with out of the U.S. Lawyer’s Workplace in Los Angeles. The decision to not sue Mozilo followed a federal appeals court in New York last month reversed a $1.27 billion penalty against Bank of America and a previous Countrywide executive, Rebecca Mairone, in a separate case over conduct at Countrywide. Disclaimer: Combination Media would like to remind you that the data included in this website is not always real-time nor precise. All CFDs (stocks, indexes, futures) and Forex costs are not provided by exchanges but rather by market makers, therefore rates might not be precise and may vary from the actual market price, indicating prices are indicative and not appropriate for trading purposes. For that reason Blend Media does n`t bear any obligation for any trading losses you might incur as an outcome of utilizing this data. Fusion Media or anyone included with Combination Media will not accept any liability for loss or damage as an outcome of reliance on the details consisting of data, quotes, charts and buy/sell signals consisted of within this site. Please be completely notified relating to the threats and expenses associated with trading the monetary markets, it is among the riskiest investment kinds possible.

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