Lawsuit Has Been Filed Against The Founder And Former Countrywide CEO Angelo Mozilo To Be Held In Florida!

Finally somebody is drawing attention to the MASS FRAUD perpetrated by Countrywide. I would like to know what happened to the FBI investigation that began after Angelo Mozilo exercised and sold (dumped) all of his Countrywide stock options that caused the stock price to tank! Angelo Mozilo got rid of his stock after re-assuring his shareholders that the company was in GREAT shape!!!

Why isn't the FBI and SEC investigating ALL of the loan and stock transactions made by the sub-prime companies? They are the primary source of the fraud. Think about it. It was their underwriters who approved ALL of the fraudulent loans based on the sub-prime underwriting guidelines/standards?!?! I know the public wants to lynch the loan applicants. There will always be people trying to get something for nothing, commit fraud or some form of crime in this imperfect world. However, the loan underwriter is supposed to be the gatekeeper PREVENTING FRAUD! Plus, you must also take into account the company's COMPLIANCE departments responsibility.

Then these sub-prime companies (ie; Countrywide, AmeriQuest, New Century, World Savings, etc.) had the NERVE to package the fraudulent loans and sell them to Fannie Mae, Freddie Mac and any one else in the secondary market who was more than willing to buy them. I believe the Banksters and Lenders along with their agents had a Fiduciary Duty toward their applicants/clients and their investors! This term also applies to our government officals and government regulating agencies! I have taken the following from wikipedia.

The FIDUCIARY DUTY is a legal relationship of confidence or trust between two or more parties, most commonly a fiduciary or trustee and a principal or beneficiary. One party, for example a corporate trust company or the trust department of a bank, holds a fiduciary relation or acts in a fiduciary capacity to another, such as one whose funds are entrusted to it for investment. In a fiduciary relation one person justifiably reposes confidence, good faith, reliance and trust in another whose aid, advice or protection is sought in some matter. In such a relation good conscience requires one to act at all times for the sole benefit and interests of another, with loyalty to those interests.

A fiduciary duty is the highest standard of care at either equity or law. A fiduciary (abbreviation fid) is expected to be extremely loyal to the person to whom he owes the duty (the "principal"): he must not put his personal interests before the duty, and must not profit from his position as a fiduciary, unless the principal consents. The word itself comes originally from the Latin fides, meaning faith, and fiducia, trust.

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The Associated Press
Suit against ex-Countrywide CEO to be held
Thursday April 30, 2009

TALLAHASSEE, Fla. (AP) — A federal court has ruled that Florida's lawsuit against the former chief executive of Countrywide Financial Corp. should be tried in state court.

A federal court in California this week sent the state's lawsuit against former CEO Angelo R. Mozilo back to Florida's circuit court.

Countrywide was the nation's largest mortgage lender before a spike in bad loans ravished its business and it was purchased by Bank of America Corp. last year. The lawsuit, filed last year, accuses Mozilo of misleading borrowers and investors about the loans.

Mozilo had argued the lawsuit was based on federal issues. But the court ruled that Florida's lawsuit cites relevant state law and can proceed in its courts. Mozilo has denied wrongdoing.