Fannie Mae - 2011 SEC Charges

2011 SEC Charges

In December, 2011, six Fannie Mae and Freddie Mac executives including Daniel Mudd were charged by the U.S. Securities and Exchange Commission with securities fraud. "The SEC alleges they 'knew and approved of' misleading statements claiming the companies had minimal exposure to subprime loans at the height of home mortgage bubble." Former Freddie chief financial officer Anthony “Buddy” Piszel, who in February, 2011, was CFO of CoreLogic, "had received a notice from the SEC that the agency was considering taking action against him". He then resigned from CoreLogic. Piszel was not among the executives charged in December, 2011. Piszel had been succeeded at Freddie by David Kellermann. Kellermann committed suicide during his tenure at Freddie.

A contemporaneous report on the SEC charges continued:

The SEC said Mudd’s misconduct included knowingly giving false testimony to Congress. Mudd said last week that the government approved Fannie Mae’s disclosures during his tenure. “Now it appears that the government has negotiated a deal to hold the government, and government-appointed executives who have signed the same disclosures since my departure, blameless — so that it can sue individuals it fired years ago,” he said in a statement last week.