LOS ANGELES, Feb 19 (Reuters) - Federal prosecutors have shelved a criminal investigation of former Countrywide Financial chief executive Angelo Mozilo after determining that his actions in the mortgage meltdown did not amount to criminal wrongdoing, according to a source familiar with the matter.
Last October, Mozilo agreed to a $67.5 million settlement with the U.S. Securities and Exchange Commission, which had accused him of misleading investors about Countrywide's health and risk-taking, and generating roughly $140 million of improper gains from insider stock sales.
Mozilo was the first top executive personally punished over alleged wrongdoing tied to the nation's housing collapse. He did not admit wrongdoing in agreeing to the SEC accord.
The state of California this month settled a predatory lending case against Mozilo and another former Countrywide executive for $6.5 million.
But the U.S. criminal investigation has wound down without indictments of Mozilo or others at Countrywide, according to the source. The story was first reported by the Los Angeles Times.
Attorneys for Mozilo did not immediately respond to requests for comment.
Another source close to the investigation said there had been no visible signs of activity for many months.
Mozilo still faces several civil suits, including some from investors in Countrywide mortgage-backed securities.
Countrywide, at one time the nation's top mortgage company, collapsed under the weight of soured loans and was acquired by Bank of America Corp.
(Editing by Vicki Allen) Keywords: USA PROBE/MOZILO (deena.beasley@thomsonreuters.com; + 1 213-955-6746) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Last October, Mozilo agreed to a $67.5 million settlement with the U.S. Securities and Exchange Commission, which had accused him of misleading investors about Countrywide's health and risk-taking, and generating roughly $140 million of improper gains from insider stock sales.
Mozilo was the first top executive personally punished over alleged wrongdoing tied to the nation's housing collapse. He did not admit wrongdoing in agreeing to the SEC accord.
The state of California this month settled a predatory lending case against Mozilo and another former Countrywide executive for $6.5 million.
But the U.S. criminal investigation has wound down without indictments of Mozilo or others at Countrywide, according to the source. The story was first reported by the Los Angeles Times.
Attorneys for Mozilo did not immediately respond to requests for comment.
Another source close to the investigation said there had been no visible signs of activity for many months.
Mozilo still faces several civil suits, including some from investors in Countrywide mortgage-backed securities.
Countrywide, at one time the nation's top mortgage company, collapsed under the weight of soured loans and was acquired by Bank of America Corp.
(Editing by Vicki Allen) Keywords: USA PROBE/MOZILO (deena.beasley@thomsonreuters.com; + 1 213-955-6746) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.