Angelo Mozilo, David Sambol and Eric Sieracki (former executives of Countrywide Financial Corporation)
Aug. 22, 2022
On June 4, 2009, the SEC charged three former Countrywide Financial Corporation (Countrywide) executives -- former CEO Angelo Mozilo, former COO and president David Sambol, and former CFO Eric Sieracki -- with securities fraud for deliberately misleading investors about the significant credit risks being taken in efforts to build and maintain the company's market share. The SEC alleged that they misled the market by falsely assuring investors that Countrywide was primarily a prime quality mortgage lender that had avoided the excesses of its competitors.
On October 15, 2010, the Court entered final judgments against all the defendants based on their consents. Among other things, as part of this settlement, Mozilo paid a civil penalty, disgorgement and prejudgment interest in the amount of $67,500,000, Sambol paid a civil penalty, disgorgement and prejudgment interest in the amount of $5,520,000, and Sieracki paid a civil penalty of $130,000. Mozilo received a credit of $25,000,000 for sums credited to him as part of his settlement in the action In re Countrywide Financial Corporation Securities Litigation, Lead Case No. CV 07-05295 MRP (MANX) (C.D. Cal.) (CFC Class Action).
For more information about the SEC's action, you can read Litigation Release No. 21068A (June 4, 2009).
On September 14, 2011, the Court established a Fair Fund and appointed Rust Consulting as the Distribution Agent. On July 12, 2012, the Court then approved the Plan of Allocation and the Plan of Distribution of the Fair Fund. Under the terms of the Plan of Distribution, the Fair Fund will be distributed to eligible claimants who submit valid proof of claim forms or who have already submitted proof of claim forms in the CFC Class Action.
On September 12, 2017, the Court entered an order approving the disbursement of $45,932,699.22 from the Distribution Fund to eligible claimants in accordance with the Plan. See the Court’s Order.
On January 16, 2018, the Court entered an order approving a supplemental disbursement of $31,066.25 from the Distribution Fund to eligible claimants in accordance with the Plan. See the Court’s Order.
On February 28, 2020, with approximately, $2.4 million remaining in the Distribution Fund, the Court entered an order approving a second disbursement of the Distribution Fund. After withholding a reserve for taxes and future administrative expenses, the Distribution Agent determined $1,842,355.79 was available for distribution to eligible claimants in accordance with the Plan. See the Court’s Order.
For more information about the Fair Fund, please contact Rust Consulting by calling the toll-free number, 1-877-225-9893, emailing your inquiry to info@MoziloFairFund.com or visiting the website at https://mozilofairfund.com.