BANGALORE (Reuters) - Securities and Exchange Commission (SEC) and former Countrywide Financial Corp Chief Executive Angelo Mozilo are in discussions to settle the civil fraud case, the Wall Street Journal said, citing people familiar with the matter.
SEC had accused Mozilo, former Countrywide President David Sambol and former Chief Financial Officer Eric Sieracki of failing to disclose the true state of Countrywide's deteriorating mortgage portfolio.
Attorneys for the defendants have denied any wrongdoing, and argued in court filings that Countrywide was upfront about the risks of its mortgages.
However, lawyers representing both the parties are preparing for trial if no agreement is reached, people familiar with the matter told the Journal.
In September, SEC received the go-ahead from a federal judge to take Mozilo and two other former executives of the mortgage company to trial, which is currently scheduled to begin in Los Angeles on October 19.
A SEC spokesman declined to comment to the Journal. SEC and Mozilo's lead attorney could not immediately be reached for comment by Reuters outside regular U.S. business hours.
(Reporting by Sakthi Prasad in Bangalore; Editing by Lincoln Feast)
