North Carolina State Treasurer Richard Moore has asked the SEC to investigate changes that Countrywide Financial (NYSE: CFC) CEO Angelo Mozilo made to his pre-arranged stock-selling program.According to The New York Times, Moore wrote, "As an investor and a Countrywide shareholder, I was shocked to learn that C.E.O. Angelo Mozilo apparently manipulated his trading plans to cash in, just as the subprime crisis was heating up and Countrywide's fortunes were cooling off. The timing of these sales and the changes to the trading plans raise serious questions about whether this is a mere coincidence."
It sure does. In the past few weeks, I've raised questions about Mozilo's stock sales. Even if there isn't anything nefarious, the fact is that he cashed out at a much higher price than shareholders could now -- $425 million in the past 3 years at an average of $36.50 -- nearly double the current price. But don't worry! Mozilo says he's actually bullish and dumping shares to diversify/fund his retirement. Where is he planning to retire? Mars?
Only time will tell whether anything comes of Moore's request, but Mozilo's stock sales should give investors an idea about whether CFC is a stock they want in their portfolios.
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