The former Countrywide Financial Corp. chief executive, Angelo Mozilo, has agreed to pay $67.5 million in financial penalties to settle the Securities and Exchange Commission's high-profile civil fraud suit against him.
The two other defendants in the case, former Countrywide president David Sambol and former chief financial officer Eric Sieracki, also settled with the SEC. Sambol agreed to pay just more than $5.5 million in penalties, and Sieracki agreed to pay $130,000. All three defendants, who reached the settlements without admitting or denying wrongdoing, also agreed to accept injunctions against future violations of securities law.
The SEC had accused the three defendants of hiding growing problems in Countrywide's portfolio of risky loans.