BusinessCompany NewsFreddie Mac pays up over fraud

Freddie Mac pays up over fraud

Lender settles over multi-billion accounting fraud

US government sponsored mortgage finance company
Freddie Mac has agreed to pay a fine of
$50m (£25m) to the SEC to settle charges
relating to massive accounting fraud that occurred from 1998 to 2002.

Four former Freddie Mac executives also settled charges of negligent conduct
with the chief regulator. They agreed to pay civil penalties ranging from
$65,000 to $250,000 each, the SEC said.

The settlement came without the company or the former executives admitting or
denying the charges.

In March fellow government sponsored lender Fannie Mae said it was likely to
make an $11bn (?6.3bn) profit restatement.

Further reading:

Fannie Mae restatement to top?6bn

Accounting concerns hurt US mortgage giants

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