Fannie Mae executives charged with fraud

Fannie Mae executives charged with fraud

Former CFO, controller and chairman charged over accounting fraud at US mortgage giant, and could face a total of $215m in fines

More than 100 charges have been laid against former Fannie Mae CFO Timothy
Howard, former controller Leanne Spencer and former chairman and chief executive
Franklin Raines over the
multibillion-dollar
accounting scandal
at the mortgage giant.

The suit, filed by the Office of Federal Housing Enterprise Oversight, could
see the three hit with more than $215m (£110m) in fines if it is proven that
they engineered a fraud at Fannie Mae by manipulating
earnings to maximise their bonuses.

‘The misconduct cost the enterprise and shareholders many billions of dollars
and damaged the public trust,’ argued
OFHEO
director James B Lockhart.

Raines’ attorney had called the charges ‘fatally biased’, according to
reports.

Further reading:

KPMG to countersue Fannie Mae

Fannie Mae spends $1bn on restatements

Fannie Mae fined $400m for accounting
scandal

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