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US To Sue Angelo Mozilo, Again

Tyler Durden's picture




 

Nearly a decade after Countrywide was sold to Bank of America in what has become the worst M&A deal of all time, bar none, having resulted in tens of billions of legal charges for Bank of America shareholders, the most recent of which was revealed also minutes ago when Bank of America was said to reach a record $17 billion settlement with the government over the sale of mortgage-backed securities, moments ago Bloomberg announced that none other than Agent Orange himself, Angelo Mozilo, is about to be sued. Again, only this time the lawsuit may actually not be tossed or result in yet another DOJ trademark wristslap.

  • U.S. SAID READYING LAWSUIT AGAINST MOZILO IN COMING MONTHS
  • U.S. SAID PREPARING TO FILE MOZILO LAWSUIT IN LOS ANGELES

More from Bloomberg:

Government attorneys plan to sue Mozilo, Countrywide’s former chairman and chief executive officer, and other individuals using the Financial Institutions Reform, Recovery and Enforcement Act, said one person with knowledge of probe. The law, approved by Congress in 1989 in response to savings- and-loan scandals, gives prosecutors 10 years to bring cases and has less stringent liability requirements than criminal charges.

 

While U.S. prosecutors have notified lawyers that their clients are targets of civil cases, any suit against Mozilo and other individuals may be more than a month away, one of the people said.

 

The Justice Department has been focused on wrapping up a FIRREA settlement with Bank of America Corp. for about $17 billion over mortgage bonds inherited from its 2008 acquisition of Countrywide and 2009 purchase of Merrill Lynch & Co. The accord, which may be announced as soon as tomorrow,  will penalize the Charlotte, North Carolina-based bank for how securities were marketed to investors, people familiar with the matter have said.

 

Mozilo said he has “no regrets” about how he ran Countrywide, according to a June 2011 deposition he gave in a lawsuit between the mortgage lender and bond insurer MBIA Inc.     

But why wait so long? Well, before you go high-fiving Eric Holder who is about to arrive in Ferguson, it turns out that the government seemingly waited so long just so it would avoid filing a criminal case against the Moz. As it stands he will merely be slapped with a few civil charges, and promptly settle for a few basis points of what BofA paid him for Countrywide. Bloomberg explains:

More than 12 months after a deadline passed to file criminal charges, U.S. attorneys in Los Angeles are preparing a civil lawsuit against Mozilo and as many as 10 other former Countrywide employees, according to two people with knowledge of the matter.

The government is making a last ditch-effort to hold him accountable for the excesses of the past decade’s subprime-mortgage boom, using a 25-year-old law that has helped the Justice Department win billions of dollars from Wall Street banks, said the people, who weren’t authorized to discuss the case publicly.

 

...

 

U.S. prosecutors dropped a criminal probe of Mozilo in early 2011, a person with knowledge of the matter said at the time. Since then, President Barack Obama’s administration has faced a wave of criticism from public-interest groups, the media and lawmakers who say the government hasn’t held enough individuals accountable for causing the financial crisis.

 

The Citizens for Responsibility and Ethics in Washington, a watchdog group, sued the Justice Department in June to try to obtain its records detailing investigations of Mozilo and Countrywide. The group faulted the government for failing to prosecute either Mozilo or the company “despite substantial evidence of wrongdoing.”

 

The SEC’s lawsuit, filed 16 months earlier, accused Mozilo of reassuring Countrywide investors about the quality of the company’s loans, while knowing that its underwriting standards had deteriorated.

 

Until now, the harshest penalty imposed on Mozilo, 75, has been a $67.5 million accord with the U.S. Securities and Exchange Commission from 2010 to resolve allegations that he misled Countrywide investors. Mozilo agreed to settle the SEC case in October 2010 by paying a $22.5 million fine and disgorging $45 million of gains from stock sales at what the regulator said were inflated prices. Bank of America covered a portion of his penalties.

 

He earned $535 million from 1999 to 2008, according to compensation-research firm Equilar  Inc. The size of the sanction in the SEC case, in which Mozilo didn’t admit or deny wrongdoing, compared with his pay has fueled public anger that financial executives walked away from the housing bust enriched and mostly unscathed.

Surely the best justice M&A proceeds can buy...

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Wed, 08/20/2014 - 15:01 | 5121415 SloMoe
SloMoe's picture

No more sun lamps for you!

Wed, 08/20/2014 - 15:01 | 5121425 McMolotov
McMolotov's picture

He's competing with Boehner to see who can look most like a Cheeto.

Wed, 08/20/2014 - 15:05 | 5121451 hedgeless_horseman
hedgeless_horseman's picture

 

 

Hands up!  Don't sue!

Wed, 08/20/2014 - 15:07 | 5121459 wallstreetapost...
wallstreetaposteriori's picture

huh... if he didnt spend it all by now, he is really fucking dumb..

Wed, 08/20/2014 - 15:11 | 5121485 Latina Lover
Latina Lover's picture

I'd be more impressed if they sued John the slime Corzine of MF Global.  But this less like to happen than Obama to abandon playing with Reggies balls on the golf course.

Wed, 08/20/2014 - 15:16 | 5121518 WhyDoesItHurtWh...
WhyDoesItHurtWhen iPee's picture

Mozillo, Boenher and Legarde are from the same litter.

Wed, 08/20/2014 - 15:18 | 5121528 max2205
max2205's picture

The DNC must need some money

Wed, 08/20/2014 - 15:43 | 5121631 Publicus
Publicus's picture

The elite does not go to jail.

Wed, 08/20/2014 - 16:05 | 5121717 Lostinfortwalton
Lostinfortwalton's picture

"Only the little people pay taxes"- Leona Hemsley and Hillary Clinton

Wed, 08/20/2014 - 17:00 | 5121940 Bananamerican
Bananamerican's picture

The dude looks like he's perpetually just pulled his head out of the devil's arse

Wed, 08/20/2014 - 17:06 | 5121970 optimator
optimator's picture

Lost it all at the Casino, here's my players card, and oh, I forgot to use it a lot.

Wed, 08/20/2014 - 15:09 | 5121466 SemperFudge
SemperFudge's picture

Usually I'm against suing unless it's a last resort but this guy has earned it.

Wed, 08/20/2014 - 16:40 | 5121834 Carl Spackler
Carl Spackler's picture

Filing civil suit against a crook like Mozillo is better than nothing.

I would like to believe that criminal prosecution never took place because the evidence wasn't strong enough to get a slam-dunk conviction.

Hope that this is not really a whitewash to protect any political "Friends of Angelo" such as Democrat Chris Dodd.

Wed, 08/20/2014 - 17:56 | 5122280 CheapBastard
CheapBastard's picture

"I'm no crook!"

 

... or is it ...

 

"I am not a crook."

 

Wed, 08/20/2014 - 15:09 | 5121470 Stuck on Zero
Stuck on Zero's picture

The solution to criminals getting away with crimes after the statute of limitations has expired is to hang them with ten year old rope.

 

Wed, 08/20/2014 - 15:23 | 5121561 Agent P
Agent P's picture

This guy helped put us into a countrywide (hehe) recession that we're not even close to recovering from.  Children born during the time of his crimes are in early grade school now, and the statute of limitations has already run out?  WTF? 

Wed, 08/20/2014 - 15:09 | 5121476 Agent P
Agent P's picture

"It's not easy being orange, either."

Lesser Known Muppet Quotes, p.27

Wed, 08/20/2014 - 15:10 | 5121478 Citxmech
Citxmech's picture

Fucking comedy.  God, that guy is a fucking cheese-dick!

Wed, 08/20/2014 - 15:15 | 5121507 hoist the bs flag
hoist the bs flag's picture

+ 1 for Coffee spit on my computer screen ( at work no less)

Wed, 08/20/2014 - 15:16 | 5121520 bbq on whitehou...
bbq on whitehouse lawn's picture

Thank you for that. Nothing is funny, but this is.

Wed, 08/20/2014 - 15:57 | 5121694 NotApplicable
NotApplicable's picture

You sir, win the internets today!

Wed, 08/20/2014 - 15:11 | 5121479 ShrNfr
ShrNfr's picture

He could just have Addison's like Boehner too.

Wed, 08/20/2014 - 15:36 | 5121601 JRobby
JRobby's picture

Brings me to tears

Wed, 08/20/2014 - 15:10 | 5121430 Gringo Viejo
Gringo Viejo's picture

I'm lookin' at a dead man.
Think this guy is partnered up with Choate men and Elis?

Wed, 08/20/2014 - 15:11 | 5121488 ShrNfr
ShrNfr's picture

And what happens when he offers to spill the beans on Dodd if things go forward?

Wed, 08/20/2014 - 15:18 | 5121442 RaceToTheBottom
RaceToTheBottom's picture

Sometimes the penalties should be well beyond payment of some criminally acquired monies.

 

Wed, 08/20/2014 - 15:22 | 5121553 SemperFudge
SemperFudge's picture

Punitive damages to boot are justified in this asshole's case.

Wed, 08/20/2014 - 15:05 | 5121448 kchrisc
kchrisc's picture

Thieves suing thieves in the courts of thieves.

An American, not US subject.

Wed, 08/20/2014 - 15:05 | 5121453 the wet spot
the wet spot's picture

Eric Holder is on it?  I'm sure Mozzy is shaking in his tanning booth.

Wed, 08/20/2014 - 15:06 | 5121454 SemperFudge
SemperFudge's picture

This guy is probably more responsible for the subprime mortgage crisis than anyone.

I'm all for reducing frivolous litigation in this country but frankly this guy couldn't get sued ENOUGH. I hope he's still getting served on his death bed.

Wed, 08/20/2014 - 15:13 | 5121500 Never One Roach
Never One Roach's picture

“Mozillo could not be reached at his $38,000,000 house in Bermuda.”

Wed, 08/20/2014 - 15:22 | 5121559 SemperFudge
SemperFudge's picture

In his defense, it's hard to hear the phone ringing in such a cavernous mansion.

Wed, 08/20/2014 - 15:47 | 5121649 NotApplicable
NotApplicable's picture

Especially with those ring-tones these days. In my office, when a phone rings, every one away from their desk has to do the "dog head-turning" thing (or move a couple of steps) in order to get a fix on where the sound is actually coming from.

I've actually stood in front of my desk and claimed, nope it's not my phone ringing.

Damn, did I just iron-clad his alibi?

Wed, 08/20/2014 - 16:10 | 5121734 Bunga Bunga
Bunga Bunga's picture

It's just a glitch in his phone, Hodler's Phone # got blacklisted by accident.

Wed, 08/20/2014 - 15:40 | 5121617 JRobby
JRobby's picture

The fraud committed at the Countrywide storefronts was exposed by a whistleblower and well documented. Pushing prime borrowers into subprime by de-activating cetain data feilds in the application software that would improve the credit profile is just one of the many infractions.

Of course many of the loans came in through "brokers"

 

Wed, 08/20/2014 - 15:49 | 5121657 NotApplicable
NotApplicable's picture

When they hired my unqualified Uncle to work their phone banks I new it had to be a scam. He said that they constantly went on about "helping the less fortunate buy a home" as an excuse.

Thu, 08/21/2014 - 00:27 | 5123977 darteaus
darteaus's picture

Except: Franklin Raines who made the rules at Fannie Maehttp://en.wikipedia.org/wiki/Franklin_Raines

FTA: The Investor's Business Daily editorial staff has noted that the expansion of easy credit to home buyers with a lesser ability to pay them back was one of the major contributing factors to the subprime mortgage crisis.[17] Raines himself stated before Congress,“In 1994, we launched our trillion-dollar commitment, a pledge to provide $1 trillion in financing for 10 million underserved families before the decade was over… In 2000… we launched a redoubled new pledge… to provide $2 trillion for 18 million underserved families before this decade is over. …we are one of the best capitalized financial institutions in the world, when compared to the risk of our business… …these assets are so riskless that their capital for holding them should be under 2 percent.”  Note: He admits that he initiated $3T in subprime housing loans while collecting $90M in compensation.

Raines and two other executives were sued and settled for $3M, the fines paid for by Fannie Mae's Insurance Agency, leaving his $90M of salary and bonuses untouched.

And:  Jamie Gorelick http://en.wikipedia.org/wiki/Jamie_Gorelick

She also collected multi-multi-multi millions while "working" at Fannie Mae, AND she "served" on the 911 "Fact Finding" commission!

These are the people who 

Wed, 08/20/2014 - 15:06 | 5121455 101 years and c...
101 years and counting's picture

im not a fan of that fuckbag, but wasnt he simply doing what the Fed wanted?  how about we have a trial for greeny, the bernanke and the fat cow and hang them all?

Wed, 08/20/2014 - 15:08 | 5121463 darteaus
darteaus's picture

And the suit against Corzine?

Wed, 08/20/2014 - 15:52 | 5121668 NotApplicable
NotApplicable's picture

Likely Caraceni.

Wed, 08/20/2014 - 15:09 | 5121469 Seasmoke
Seasmoke's picture

Don't hang Angelo. Hang the friends of Angelo !

Wed, 08/20/2014 - 15:11 | 5121481 detached.amusement
detached.amusement's picture

well, ok.  Angelo, too

Wed, 08/20/2014 - 15:11 | 5121473 clade7
clade7's picture

Sue Angelo Mozilo?  What the fuck good would that do?  Its not like any of the affected parties would ever see a nickle of that money...leave him alone!  He might be the buyer of that pontoon boat I have up for sale on Craigslist!  That is, if he wants to go slummin...a guy can hope right?.

Wed, 08/20/2014 - 15:10 | 5121475 Budd aka Sidewinder
Budd aka Sidewinder's picture

If this fucker has 'no regrets' about how he ran Cuntrywide and is so damn proud of the job he did, why won't he come out and face the public that he helped so much?

Allergic to guillotines?

Wed, 08/20/2014 - 15:10 | 5121477 Jonesy
Jonesy's picture

Orangelo Mozilo?  I thought we'd seen the last of him.

Wed, 08/20/2014 - 15:19 | 5121535 krispkritter
krispkritter's picture

If he was hiding in a Cheetoh factory you'd be correct.

Wed, 08/20/2014 - 15:12 | 5121486 NOTaREALmerican
NOTaREALmerican's picture

I wonder if he's still orange?    He should be on the Kardashian show.

Wed, 08/20/2014 - 15:13 | 5121492 SemperFudge
SemperFudge's picture

Of course there are no criminal charges. Wouldn't want to frighten Wall Street into thinking they might be held ACCOUNTABLE for their crimes or anything.

Wed, 08/20/2014 - 15:12 | 5121494 Dr. Engali
Dr. Engali's picture

Welcome to Merika! Land of Liberty and JustUs for the 1%.

Wed, 08/20/2014 - 15:16 | 5121495 buzzsaw99
buzzsaw99's picture

free corzine, free mozilo

You go back, Jack, do it again...

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