Ex-Countrywide execs get probation terms for insider trading

A slap on the hand, a pat on the ass and 3 years probation for stealing $100,000.

Three former Countrywide Financial Corp. executives who pleaded guilty to criminal insider trading charges were sentenced Monday to serve three years’ probation, the U.S. attorney’s office said.

Apparently these Countrywide crooks used confidential data showing Countrywide would not meet Wall Street earnings projections for the third quarter of 2004. They then used this “inside” information to sell off their shares, to buy put options and, eventually, to short-sell the stock, in efforts to profit from a fall in the stock’s price, prosecutors said. Put options allow an investor to sell shares at a set price within a certain time period.

Their scheme generated more than $100,000 in profits combined and all they got was probation. Way to send the message to these crooks Mr. AG. Insider trading must not be that big of a deal. I would have at least give them 90 days in county jail and give them a taste of the criminals they are.

The three men were all vice presidents working in financial planning or portfolio management for Countrywide.

Alan Cao of Woodland Hills, Quan Zhu of Santa Monica and Jun Shi of Moorpark will serve several hundred hours of community service and pay fines, said Beong-Soo Kim, an assistant U.S. attorney.

In addition, Cao was ordered to pay a fine of $4,000, while Zhu and Shi must each pay a $2,000 fine, Kim said.


Posted in Loan Modification News | 6 Comments

6 Responses to “Ex-Countrywide execs get probation terms for insider trading”

  1. Anonymous says:

    I say we take away THEIR homes so they can see what it feels like

  2. Chris says:

    No. They need to pay the 100k back and the interest that was made plus whatever was bought or leveraged with the 100k. Then they need to go to jail. They can keep the house

  3. foolish1 says:

    What a Prime Example of the damage done with the help of industry Insiders to those that had no idea what was going on.

    http://www.pe.com/reports/2007/wealth/

    Victims’ Website:

    http://www.coreclient.110mb.com/

    The perpetrators of this crime are still operating…are still writing loans and stealing money from victims. Check out the named businesses carefully.

    Have you heard of any of these guys or done business with any of them??

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  5. Heather says:

    That is absolutely rediculous! Martha stewart goes to prison for $40,000…and these guys have a few hrs of community service and a 4% fee on the $100,000 they stole?! WOW!

  6. JacMac says:

    Feels like Enron all over again. You know, executives getting away with murder.