US mortgage buyer settles with SEC
Company allegedly manipulated earnings and misled investors, costing them a $50m fine from the SEC
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
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
‘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.