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Lawsuit! Countrywide's Mozilo Facing The Feds*

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Rumors surfaced a few months ago that the Securities and Exchange Commission was putting together a fraud case against ex-Countrywide CEO Angelo Mozilo. Now it's official: The feds have filed a civil fraud lawsuit today against Mozilo and two other former Countrywide execs. According to the LA Times, "the agency has been investigating whether Mozilo and others failed to inform shareholders just how lax lending standards became....as the housing boom neared its end. The SEC also was scrutinizing Mozilo's sale of hundreds of millions of dollars in stock in 2006 and 2007 as defaults mounted on the high-risk loans that Countrywide increasingly had specialized in." *Updated [LA Times]