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A Long and Winding Road

(Daniel Acker - Bloomberg News)

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Thursday, October 11, 2007

June 2003: Leland Brendsel is pushed out as chief executive after Freddie Mac uncovers billions of dollars in accounting misstatements. The Office of Federal Housing Enterprise Oversight tries to block payments to Brendsel until it reviews his separation agreement.

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December 2003: OFHEO files to recoup $34 million from Brendsel in back pay, restitution and fines. Freddie Mac agrees to pay OFHEO a $125 million civil fine.

September 2004: A federal judge rules OFHEO cannot freeze his pay while its case against him is pending.

April 2006: Freddie Mac agrees to pay $410 million to settle shareholder lawsuits stemming from the accounting errors.

September 2006: The Justice Department says it does not plan to file criminal charges against Freddie Mac.

Last month: Freddie Mac settles Securities and Exchange Commission security-fraud charges for $50 million. Other former Freddie executives settle negligence charges. Former CFO Vaughn Clark agrees to cooperate in the OFHEO proceeding against Brendsel.

Monday: Hearing before an administrative judge on OFHEO's attempts to reclaim payments to Brendsel is scheduled to begin and is to continue through February.

SOURCE: Washington Post reporting


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