Staff at the Securities and Exchange Commission have decided to recommend filing civil fraud charges against Angelo Mozilo, the co-founder of Countrywide Financial Corp., people familiar with the investigation said Wednesday.

The SEC sent a Wells notice to Mozilo several weeks ago alerting him of the charges, the people said. The potential charges include alleged violations of insider-trading laws as well as failing to disclose material information to shareholders, a person familiar with the matter said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.