SEC Asked To Looking Into Insider Trades

by Darren

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The SEC is being asked to look into case of insider trading at CountryWide Financial, the troubled lender. The subprime mortgage crisis has been tough on almost everyone in the financial industry, but not so for Countrywide CEO Angelo Mozilo. Now, some would like his trades investigated. State Treasurer Richard Moore has asked the SEC to investigate the timing of stock sales made by the Angelo Mozilo, the chief executive of mortgage lender Countrywide Financial Corp.

“As one of many investors who have felt the painful losses in Countrywide stock, I am outraged at his manipulation of the system and this abuse of shareholders,” Moore wrote. “The timing of these sales and the changes to the trading plans raise serious questions about whether this is mere coincidence.”

Moore cited reports that Mozilo was unloading 4.9 million Countrywide shares worth more than $138 million between November 2006 and August 2007. Moore said that at least three times over five months starting in October 2006, Mozilo reportedly changed the plans that outline how many of his shares would be sold monthly. That, said Moore, allowed the CEO to sell the stock before prices fell dramatically.

So far Countrywide has not commented on the letter.

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