Countrywide CEO sold big as stock dropped

"Quick changes in Mozilo's trading plan raise red flags, experts say." -- We hope we helped tip them off here. The main point is that the "pre-arranged" share sales plans are undermined by regular changes in the terms of the plan, as in Mozil-oompa's case. Indeed, it is looking more and more like shareholders were dumpedy-duped:

"This raises a slew of red flags," said Andrew Stoltmann, a Chicago-based securities lawyer. "Anytime you have revisions or modified plans. . . it is extremely suspicious."

Priebe said he advises his clients to set up the agreements several months before they're used and then try not to deviate from them for years.

Thom F. Carroll, a financial planner with the Baltimore wealth management firm Carroll, Frank & Plotkin, said revising such a plan puts an executive "on a slippery slope."

"There are circumstances where the plans could be amended, but you better have a good reason because it's defeating the basis of the rule," Carroll said. "If a guy is changing his plan around, I would think that would send up a red flag. I wouldn't allow my clients to do it."