The Securities and Exchange Comission has charged the former CEO of Countrywide Mortgage, Angelo Mozilo, with securities fraud for insider trading.

Basically, he, former COO, David Sambol, and former CFO, Eric Sieracki, are accused of misleading investors about how crappy their lending standards were until they dumped their own stock.

This is not a criminal proceeding, but one hopes that it moves to that.