Angelo R. Mozilo, the former chief executive officer (CEO) of Countrywide Financial, untilit went belly-up, the nation’s largest mortgage lender, agreed to pay $67.5 million on Friday to settle a civil fraud case brought by the Securities and Exchange Commission last year, according to an article in USA Today. Mozilo agreed to repay $45 million in profits plus $22.5 million in civil penalties, stemming from charges filed against him by the Securities and Exchange Commission last year
Sounds like a lot of money doesn't it, but wait, first, Bank of America, the current owner of Countrywide Mortgage, is going to pay $20 million of Mr. Mozilo’s $67.5 million bill as part of the indemnification agreement he had with the company.
If you haven't followed the career of Angelo Mozilo and Countrywide Financial, the SEC last year alleged that Mr. Mozilo and former Countrywide executives David Sambol and Eric Sieracki misled shareholders about the quality of loans on the company’s books. In addition, Mozilo was charged with selling company shares based on inside knowledge of the company’s troubles.
The firm, under his direction as CEO, played a huge role in bringing on the collapse of the housing industry and in turn, the entire finanacial industry. Yet, as a result of this settlement, he will be able to live happily ever after having not even had to admit his guilt.
So here, in 10 simple steps, is how to GET OUTRAGEOUSLY RICH in just 9 yeasrs and live happily ever after.
1. Create a company that writes mortgages.
2. Write mortgages to people who you suspect cannot afford to repay them and then quickly sell off those mortgages to others.
3. Pull off your scam during a long housing boom with people taking out even more mortgages and then refinancing them.
4. Pay yourself 521.5 million dollars over 9 years (2000–2008).
5. Dump your stock in the company as you see the market beginning to turn down. Bank $140 million in profits from the sale.
6. Unload company on a large bank, Bank of America, which is getting a huge government hand-out to clean up the mess.
7. Retire.
8. Settle lawsuits for $67 million. Get your old company to pay $20 million of it.
9. Hire a security team to keep the ffamilies whose lives you destroyed away from you.
10. Live happily ever after.
The government prosecutors who made this deal are probably patting themselves on the back, thinking, "Yea babe, we took down a big-guy this time." In reality, Mozilo played them for fools and getting away with yet another scam -- not that outsmarting government bureaucrats takes all that much intelligence.
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10 comments:
This is utterly disgusting and you wonder why there is a "Tea Party" ?
Surprise...surprise. Who would ever have guessed that one of America's great capitalists was also a greedy money-grubbing crook. Yeah right, surprise, surprise.
I'm not surprised. Who didn't already know that the greediest of our citizens are also the richest and no one feels compelled to make them pay in any menaingful way for their crimes.
Hmmm,
Ia gree with all 3 of the previous comments.
Everyone knows the easiest way to get rich is to stick it to those less educated and that is exactly what this guy did.
Why pick on us rich guys. Go bother someone who cares.
Who would have guessed that the rich are taking advantage of the rest of us?
My, my, my. why are any of you surprised. This guy has been a known crook for a long time. The only news is that he got caught -- but escaped serious punishment -- and that is NOT a surprise, is it!
Makes you think doesn't it.
Those who are crooked enough get ahead while the rest of us just work until we drop. Hello, greed. goodbye. honesty and decency!!
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