Freddie Mac Settles With SEC For $50M

Law360, New York (September 27, 2007, 12:00 AM EDT) -- Government-chartered mortgage buyer Freddie Mac will pay $50 million to settle charges of securities fraud brought by the U.S. Securities and Exchange Commission, the SEC said Thursday.

The SEC's complaint said that Federal Home Loan Mortgage Corp., which neither denied nor admitted to any wrongdoing when it agreed to the settlement, overstated its earnings from 2000 to 2002 to give investors the impression of a smooth increase in income. The company used a range of illegal transactions to falsify its apparent earnings, according to the SEC....
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