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Article: Freddie Mac To Pay $125M To Settle Fraud Charges.
- Article from:
- Credit Union Journal
- Article date:
- December 15, 2003
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In an effort to close the books on the broad accounting scandal, Freddie Mac agreed last week to pay $125 million to settle charges that it manipulated earnings over the past three years. The Office of Federal Housing Enterprise Oversight, which oversees the two major secondary market players, Freddie Mac and Fannie Mae, said Freddie ignored accounting rules and made transactions solely for the purpose of masking earnings volatility. "Weaknesses existed in every aspect of Freddie Mac's accounting process," said Armando Falcon, director of OFHEO, in announcing the settlement.
Freddie admitted last month that it underreported profits by $5 billion over the past ...