From USA Today:
The Securities and Exchange Commission is examining stock sales of the chief executive of Countrywide Financial, the nation's largest mortgage lender, a person familiar with the matter said Wednesday.
The informal SEC inquiry of stock sales by CEO Angelo R. Mozilo has been underway for a while, the person said, speaking on condition of anonymity because the probe has not been made public.
The inquiry was reported online Wednesday afternoon by The Wall Street Journal.
Mozilo sold some $130 million in Countrywide stock in the first half of the year through a prearranged 10b51 trading plan. These plans allow a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material non-public information.
North Carolina's state treasurer last week asked the SEC to investigate Mozilo's stock sales. He raised questions about changes made to Mozilo's plan in the months before the company's stock plunged, allowing Mozilo to significantly increase his sales of Countrywide shares.
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