Freddie Mac 2002

http://www.nbcnews.com/id/21027918/ns/business-us_business/t/freddie-mac-settles-accounting-fraud-charges/


Owning homes is a great privilege for any single or married person. When Freddie Mac had to pay $50 million in civil securities fraud charges, the majority of homeowners became concerned about their loans. What is going to happen? Do we have to move? Will our interest rate and monthly payment increase? To lose a home whether it be through a foreclosure or through an accounting scandal, is a difficult time in anyone's life.

In June of 2003, Freddie Mac exposed their accounting scandal that started in 2000 through 2002. The misstated earnings totaled $5 billion which the majority of the earnings were underreported to meet the expectations of Wall Street. The executives behind this scandal were David Glenn, former president and chief operating officer, Vaughen Clark, former chief financial officer, ad two former senior vice presidents, Robert Dean and Nazir Dossani. These four executives agreed to pay $515,000 in civil fines and restitution fees of $275,548.