Three former executives of Countrywide Financial Corp., Calabasas, Calif., pleaded guilty June 26 to insider trading in a scheme that generated more than $100,000 in profits.The three former executives (all vice presidents) are: Alan Cao and Quan Zhu, who worked in Countrywide's Calabasas, Calif. headquarters; and Jun Shi, who worked in the Thousand Oaks office of CFC's bank affiliate. According to the U.S. Attorney's Office for the Central District of California, the three traded on information relating to profits for the third quarter of 2004. The three obtained confidential information revealing that Countrywide would not meet analysts' expectations for that quarter and traded on it. Each man pleaded guilty to one count of securities fraud, which carries a maximum penalty of 20 years in prison. According to the Quarterly Data Report, Countrywide is the nation's largest residential lender. The company can be found online at http://www.countrywide.com.
3 Ex-CFC Execs Plead Guilty to Insider Trading
Published June 27, 2007, 2:00 p.m. EDT
1 Min Read
