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

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

6d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

2w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter