Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
PROSECUTORS CONSIDER CIVIL ACTION AGAINST COUNTRYWIDE FINANCIALS CHIEF EXECUTIVE
Author: Joel R. Glucksman
Date: November 24, 2014
Key Contacts
Back
The business website DealBook reported on November 17 that the Justice Department is considering filing civil fraud claims against Countrywide Financials former chief executive Angelo Mozillo. Countrywide was one of the prime purveyors of mortgages to people with a questionable credit history, and the federal prosecutors are alleged to be considering a lawsuit against Mozillo due to his role in Countrywide’s marketing of mortgages.
According to the DealBook article, Mozillo’s lawyers argue that such a lawsuit would merely duplicate the Securities and Exchange Commission’s prior action, which resulted in a settlement with Mozillo and other defendants requiring the payment of $67.5 million in fines and restitution. They claim that it would be unjust for two government agencies to bring similar actions several years apart.
The DealBook article quotes Columbia University professor of criminal law Daniel Richman as saying that, “settling with the S.E.C. in and of itself doesn’t necessarily guarantee peace from the government at large.” Richman also notes that Mozillo could have asked for a global settlement when he made his deal with the S.E.C. but apparently did not.
Mozillo was the public face for the excesses which led to the mortgage market meltdown, and there is persistent, public anger over the absence of any criminal prosecutions for persons responsible for the financial crisis. However, federal prosecutors around the country have used the law to obtain over $36 billion in settlements from the financial firms involved in selling defective, mortgage-backed securities.
Whether or not to sue Mozillo will require a final decision by the Justice Department in Washington, and it could become one of the first orders of business for the proposed new Attorney General Loretta Lynch.
- Practices: Bankruptcy & Creditors' Rights, Corporate Transactions & Business
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Rule 26 Expert Discovery: When an Expert Witness Uses AI, Is It Discoverable?
Case law following the 2010 amendments to Federal Rule of Civil Procedure 26 offers guidance on how courts are likely to address whether an expert witness’s AI records are subject to discovery. Key Takeaways Rule 26 Expert Discovery After the 2010 Amendments This article addresses the question courts and lawyers have faced in recent cases: […]
Author: Chris Seelinger
How Expert Witness AI Use Ends Up in Discovery
“Show how 3M is 0% at fault.” The absurd tale of how a 350-page ChatGPT history for 3M’s expert witness was produced during a deposition is more likely than you think. It’s an inevitable trend, and an unsettled question for federal courts as experts make generative AI part of their workflow. Key Takeaways Expert Witness […]
Author: Chris Seelinger
The Screenshot Problem: Why Nothing Is Really Private Anymore
Screenshots have changed the risks of electronic communications. The screenshot problem is that messages intended for one person or a small group can be copied, forwarded, preserved, and ultimately presented to opposing counsel, regulators, journalists, customers, or a jury. Businesses should recognize that a truly private digital conversation is increasingly unreliable and ensure their policies, […]
Author: Sean M. Pena
BESS Project Agreements: Allocating Risk Among Developers, EPC Contractors, and Equipment Suppliers
Developers, engineering, procurement, and construction (EPC) contractors, and equipment suppliers each play a critical role in completing a BESS project. However, when equipment costs rise, deliveries are delayed, or regulations change, determining who bears the financial consequences can become contentious. Well-drafted project agreements are essential to sound risk allocation. Key Takeaways This article is Part […]
Author: Nicholas Wall
IP Infringement: What Steps Can You Take If You're Affected?
IP infringement occurs when someone uses your intellectual property without your permission or beyond the scope of the permission you granted. Common examples of IP infringement include copying a product’s patented features or using a trademarked logo in a way that is likely to confuse consumers about the source or affiliation of goods or services. […]
Author: Michael Mietlicki
Public Allegations, Unfinished Investigation: What New Jersey Businesses Should Do Next
When facing public allegations of wrongdoing, companies should not let the speed of the public conversation dictate the speed of an investigation. An investigation designed to confirm a preferred narrative rather than establish the facts can create serious problems later, particularly if litigation, regulatory scrutiny, or employment claims follow. Key Takeaways When public allegations surface […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.