Updated from 9:19 a.m. EDT

Freddie Mac ( FRE) is reshuffling its executive ranks, and as part of a number of changes at the top, the company terminated President and Chief Operating Officer David Glenn.

In a press release Monday, Freddie Mac said Glenn was ousted because of "serious questions as to the timeliness and completeness of his cooperation and candor" with the legal staff of the board's audit committee, which was retained in January to review the circumstances of the accounting errors identified during the company's recent restatement.

Earlier this year, the company said it would restate its 2000, 2001 and 2002 financial results. In January, Freddie said the restatements would likely increase its reported earnings for those prior periods, and the company reiterated that view today.

But, as indicated previously, Freddie said that "adjustments affecting its income will relate substantially to changes in the timing of income recognition, and, as a result, cumulative increases related to the adjustments will have offsetting effects in future periods."

Freddie has informed its regulator, the Office of Federal Housing Enterprise Oversight, the Securities and Exchange Commission and the New York Stock Exchange about the moves. The company said its board and management are cooperating with regulators and will continue to do so.

Armando Falcon, the director of the OFHEO, said he's sending a team to investigate the issues surrounding the review of the Freddie Mac re-audit. Falcon sent a letter to Freddie, "as a result of management misjudgments that led to a misapplication of GAAP principles and disclosures of employee misconduct, specifically, altering and failing to supply documents relevant to the restatement process," according to a statement on the OFHEO's Web site.

Freddie also said Leland C. Brendsel will retire as chairman and chief executive and resign from the board. Freddie expects Brendsel to continue serving as chair of the Freddie Mac Foundation. Additionally, Vaughn Clarke resigned from his post as executive vice president and chief financial officer.

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