Freddie Settles SEC Case

Freddie Mac(FRE Quote) will pay $50 million to settle charges that it misled investors by smoothing earnings growth.

The settlement closes out the last probe tied to the accounting chicanery that saddled the mortgage firm with billions of dollars in restatements and led to the ouster of previous management.

In its complaint, the Securities and Exchange Commission alleged that Freddie manipulated its earnings beginning as early as 1998 and lasting through 2002. According to the complaint, Freddie Mac misreported its net income in 2000, 2001 and 2002 by 30%, 24% and 43%, respectively, the SEC said. ...