Back in 2006, the country's largest mortgage leader, Countrywide Financial experienced a record-breaking run. A year and a half later, Countrywide was forced to sell itself to Bank of America at a cheap price due to the losses experienced by handing out questionable loans. The Security Exchange Commission feels that Countrywide's CEO Angelo Mozilo deceived investors, leading them filing securities fraud charges against him. Mr. Mozilo did not admit to any wrongdoing but agreed to a settlement on the charges. The settlement signals an important day in the credit crisis. John M. McCoy III, leader of the S.E.C.'s legal team explains that "This settlement will provide affected shareholders significant financial relief, and reinforces the message that corporate officers have a personal responsibility to provide investors with an accurate and complete picture of known risks and uncertainties facing a company."
http://www.nytimes.com/2010/10/17/business/17trial.html?pagewanted=1&_r=1&ref=us
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