PracticeAuditUS mortgage buyer settles with SEC

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
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.

Further reading:

Freddie
Mac Pays $50M to Settle Charges

Freddie Mac agrees
$50m penalty

Freddie
Mac to Pay $50 Mln to Settle Fraud Charges

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