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Freddie Will Assit OFHEO in Cases Against Ex-Officers

It will help in the administrative actions against Brendsel and Clarke.
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Freddie Mac


agreed to assist the government in its actions against two former executives of the mortgage giant under a settlement announced Monday.

According to the Office of Federal Housing and Enterprise Oversight, Freddie will help in the government's ongoing administrative actions against former CEO Leland Brendsel and former CFO Vaughn Clarke.

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Freddie Mac also agreed to seek the recovery of funds from ex-officers after the administrative actions, OFHEO said.

In 2003, OFHEO accused Freddie of a multiyear accounting fraud that included the misapplication of accounting standards for derivatives to massage earnings. Brendsel headed the government-chartered Freddie during the period of the accounting problems; both he and Vaughn left the company in June 2003.

Freddie agreed to a $125 million settlement of the accounting scandal in December 2003.