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SEC accuses Mozilo of $140 million in insider trading profits


    WASHINGTON (Reuters) - The U.S. Securities and Exchange Commision has charged Angelo Mozilo and two former executives with securities fraud and misleading Countrywide investors about credit risks taken to build, maintain market share.

    Highlights:

    * Says Mozilo charged with insider trading for selling countrywide stock and made nearly $140 million in illegal profits.

    * Accuses Countrywide of engaging in unprecedented expansion of underwriting guidelines as it wrote riskier loans.

    * Accuses Mozilo, David Sambol, Eric Sieracki accused of misleading market by falsely assuring investors that Countrywide was mainly a prime-quality mortgage lender.

    * Says Countrywide failed to disclose to investors its expansion of underwriting guidelines and move into riskier loans.

    * Says Countrywide's credit risks were so alarming that Mozilo wrote a "dire" series of assessments of the company's loan products, risks.