With a trail of damaging e-mails and big-money stock sales, the federal government’s fraud case against Angelo Mozilo and two other former Countrywide Financial Corp. executives appears to have plenty of ammunition.

The trio knew the mortgage lender was taking heavy risks but kept quiet about it, the civil lawsuit contends. It cites internal company e-mails in which Mozilo derided some of Countrywide’s loans as “toxic” and conceded the company was “flying blind” about certain risks it was taking.

* Full story available on The LA Times