SEC Sues Former Fannie Mae and Freddie Mac Execs

Before you go, we thought you'd like these...
SEC fannie mae freddie macNEW YORK -- The Securities and Exchange Commission charged six former executives of Fannie Mae and Freddie Mac with securities fraud on Friday for misrepresenting their holdings of high-risk mortgage loans.

The SEC is targeting three former executives of Freddie Mac, including chief executive officer Daniel Mudd, chief risk officer Enrico Dallavecchia and executive vice president of single-family mortgage business Thomas Lund.

The agency is also going after three former executives of Fannie Mae: CEO Richard Syron, executive vice president and chief business officer Patricia Cook and executive vice president for the single family guarantee business Donald Bisenius.

The SEC is seeking financial penalties against them, but did not specify an amount.

The suit claims that the executives knowingly approved of misleading statements, downplayed the size of their holdings of subprime loans and falsely claimed that their risky investments were minimal and manageable.

Read the full story on CNNMoney

More from CNNMoney:
10 Cheap Homes for Sale by Uncle Sam
5 Awkward CEO Testimonies
Fannie, Banks Halt Foreclosures for the Holidays




More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find
homes for sale in your area.
Find rentals in your area.
Find foreclosures in your area.
Read Full Story

Find a Home

Buy
Rent
Value
Powered by Zillow

People are Reading