LAWSUITS NEWS & LEGAL INFORMATION
Freddie Mac Accounting Scandal
Washington, DC: (Nov-06-07) The US Government brought charges against Leland Brendsel, Freddie Mac's former CEO, who was ousted in 2003, alleging that he played a vital role in the mortgage finance company's multibillion-dollar accounting scandal. The government's allegations included one that claimed that Brendsel created a corporate culture that allowed the accounting lapses to occur. The office, which regulates Freddie Mac and its government-sponsored sibling, Fannie Mae filed civil charges against Brendsel in December 2003.
Sources confirmed that in a recent move, Brendsel reached a settlement with authorities where he agreed to pay $2.5 million in fines to the government, give back $10.5 million in salary and bonuses to Freddie Mac and to waive claims against the company for compensation worth $3.4 million. Though he did not accept any liability, nor did he admit any wrongdoing, his legal counsel claimed that he agreed to settle as most of the money paid will be used to assist families who are threatened with the loss of their homes in the current mortgage market crisis. The $16.4 million settlement resolves all litigation involving Brendsel. [USA TODAY: ACCOUNTING SCANDAL]
Published on Nov-7-07
Sources confirmed that in a recent move, Brendsel reached a settlement with authorities where he agreed to pay $2.5 million in fines to the government, give back $10.5 million in salary and bonuses to Freddie Mac and to waive claims against the company for compensation worth $3.4 million. Though he did not accept any liability, nor did he admit any wrongdoing, his legal counsel claimed that he agreed to settle as most of the money paid will be used to assist families who are threatened with the loss of their homes in the current mortgage market crisis. The $16.4 million settlement resolves all litigation involving Brendsel. [
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