Washington – Mortgage finance company Freddie Mac on Thursday agreed to pay $50 million to settle Securities and Exchange Commission charges that it fraudulently misstated earnings over a four-year period.
Four former Freddie Mac executives settled negligent- conduct charges by agreeing to pay a total of $515,000 in civil fines and to make restitution totaling $275,548. They are former president and chief operating officer David Glenn, ex-chief financial officer Vaughn Clarke, and former senior vice presidents Robert Dean and Nazir Dossani.
Freddie Mac neither admitted nor denied wrongdoing in the accord.
An accounting scandal erupted at the government-sponsored firm in June 2003 when it disclosed it had misstated earnings by $5 billion – mostly underreported – for 2000-02.
