Company allegedly manipulated earnings and misled investors, costing them a $50m fine from the SEC
Accountancy Age, 01 Oct 2007
A US mortgage buyer is to pay a $50m settlement fine to the US Securities and Exchange Commission following allegations that it manipulated earnings for three years.
The SEC said that Freddie Mac is also set to pay $800,000 in penalties for improperly managed earnings between 1998 and 2002, Marketwatch.com reported.
'Freddie Mac's departure from proper accounting practices was the result of a corporate culture that sought stable earnings growth at any cost,' said Linda Thomsen, the SEC's enforcement director, in a statement.
The company has neither denied nor admitted the allegations.
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