Countrywide Financial Corp. founder and former chief executive Angelo Mozilo must face trial on regulators' claims he misled investors about risks tied to subprime lending, a judge ruled.

U.S. District Judge John F. Walter in Los Angeles late last week denied legal filings by Mozilo and two other former senior Countrywide executives, David Sambol and Eric Sieracki, for a ruling that no genuine issues had been raised to justify a trial.

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