They then used the information to sell off their shares, to buy put options and, eventually, to short-sell the stock, prosecutors said.160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set! AD Quality Auto 360p 720p 1080p Top articles1/5READ MOREGame Center: Chargers at Kansas City Chiefs, Sunday, 10 a.m.His attorney declined to comment. Zhu, of Santa Monica was fired in June. That same month, federal prosecutors disclosed he and two other former Countrywide executives had agreed to plead guilty to criminal charges of insider trading as part of a scheme that generated more than $100,000 in profits. All were vice presidents working in financial planning or portfolio management. Sentencing in the men’s criminal cases was expected in the coming weeks. The SEC filed civil insider trading charges against the other two men – Alan Cao and Jun Shi – last year. Both agreed to pay back gains from their Countrywide stock transactions plus fines. In plea agreements in the criminal case, Zhu, Cao and Shi admitted they got hold of confidential data showing Countrywide would not meet Wall Street analysts’ financial expectations for the third quarter of 2004. A former executive at mortgage lender Countrywide Financial Corp. of Calabasas was charged Monday with insider trading after he sold stock before the company announced negative earning results three years ago, regulators said. The Securities and Exchange Commission filed a civil complaint against Quan Zhu, 43, in Los Angeles federal court. Zhu has agreed to settle the charges, without admitting or denying the allegations, by paying nearly $109,000, officials said. Regulators say Zhu was tipped to nonpublic information about the company’s negative earning results in 2004. In the days before the quarter’s results were made public, he sold short the company’s stock and bought put options, betting that the stock price would fall. The transactions resulted in gains of more than $35,000 once the stock fell with the public announcement, officials said.